Your goal is to raise your credit score so you can enjoy lower interest loans, lower insurance premiums, a more affordable mortgage, and all the other benefits of good credit.  You have already gotten copies of your credit report, and identified the negative items that are bringing down your credit rating.  You have submitted forms to the credit reporting bureaus, disputing the negative information that they have been distributing in your credit report.  And now, you have just gotten back rejections of your credit disputes.  What should you do next?  That is the focus of this article.

Don’t be surprised that it isn’t easy to erase the bad news from your credit report.  It seems that they make it hard, on purpose.  But with a little perseverance, you can be successful. 

First, check the dispute letters that you had originally submitted.  Were you concise and accurate in stating your case?  The credit bureaus and lenders get a ton of dispute letters every week.  In order to make sure your letter is actually read and understood, keep it short and to the point.  Do not include details that will only confuse the situation. 

Don’t try to impress or scare them by quoting the law.  You may be tempted to include legal wording in your dispute letters, particularly if you feel that they have violated the law.  But a personal letter will be much more effective.  Maybe an exceptional circumstance, like an illness or divorce, forced you to default on your debt - tell them that.

Did you include documentation with your letter?  Always include anything that backs up your case.  Do you have cancelled checks or bank statements that prove you made a disputed payment?  Of course, never send the originals - make copies of all your documentation. 

If your dispute letter was rejected by the credit bureau, be sure to correspond with the lender or organization that reported the negative item to the bureau.  If you’ve ever contested a charge on your charge card, you know how they play this game.  You ask the credit card company to delete a charge you think is wrong.  The credit card company says they will suspend the charge while they investigate.  They check with the merchant who recorded the charge, and - surprise! - the merchant says the charge was valid, and the credit card company re-instates it on your bill.  Thanks for nothing.  Well, you’ll probably get a similar run-around when you contest items on your credit report. Try a different angles in your follow-up letter.  You should try dealing with a different department in the lender organization to see if they are more sympathetic to your cause. 

Persistence will pay off.  If you deal with the credit bureaus and financial institutions in a professional, but firm way, you are more likely to be successful in your dispute.  Remember, that although your dispute is with an organization, a person will be reading your letters.  If you connect with them in a personal way, they are more likely to understand your position.

Courtesy of: The Credit Secrets Bible

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Hundreds of readers search for causes of consumer debt and how to deal with it. There’s nothing scientific about consumer debt or how to get out of debt. Many will choose debt counseling to help with their debt elimination; some will try debt consolidation and yet many will just bury their heads and wait. The first step for eliminating your debt is understanding the root causes.

1. Decrease in Income. Many times we’re caught off guard with a job termination, an on-going emergency, reduced work hours or overtime but we keep the same lifestyle. The sooner you learn to adjust to life’s new reality, whether it be temporary or permanent, the sooner you’ll decrease that debt.

2. Poor Financial Management. Unless you have droves of money and no worries, you need a monthly spending plan. Without a plan, you have no idea where your money is going. You may be spending hundreds of dollars unnecessarily. Your spending plan is no more difficult than writing down any of your expenses and income and integrating the two to see where the money is going. How would you know if someone has been stealing your money if you never check?

3. Divorce. Many marriages fail and bring about a financial tragedy. When you decide to divorce, so does all the money; bank accounts; real estate and anything else of value. For many, bank accounts can be frozen meaning no money coming but the bills will still pile up.

4. Saving too little or nothing at all. The easiest way to avoid unnecessary debt is being prepared for unexpected emergencies by saving three to six months of expenses. With a cushion in place, a job layoff or illness will not immediately cause you financial turmoil and increase your debt.

5. Poor Money Communication Skills. It’s extremely important to communicate with your spouse or significant other about finances. Be realistic with immediate family about what you can and cannot accomplish. Discuss financial goals and spending habits. If you’re a saver and believe in preparing for uncertainties but you’re married to a spender who lives for the moment, you will want to create a strategy for both to get what you want. Become knowledgeable about household and each other’s personal expenditures.

The stories can drive even the hardest hearted of us to tears. Families that once lived the American dream have been turned into virtual paupers. The pain, dereliction of abandoned homes, many of them vandalized… it’s all there to be seen. We’re talking about the mortgage meltdown

The American dream is now, for many Americans, the American shame: With no resolution in site. And don’t forget Katrina victims are still clinging on to hope that help might come some day. Read this article about this sad shame.

JACKSONVILLE, Fla. — The house on East 24th Street was the worst of the six that David Law and Trey McCallister worked on the other day here. The front door had been kicked in so many times that the dead bolt was exposed and bent. Trash littered the front and back yards. A copper pipe was gone.

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>????????ou are in serious debt, it would be worthwhile for you to know how to file for bankruptcy and how it will affect your credit. Bankruptcy is something everyone has heard of, and has a vague idea about, but little knowledge about how to go about it or its actual effects.

Before filing for bankruptcy, make sure there are no other options.

Under current United States law, any person filing must receive credit counseling from a person or group approved by the court-appointed bankruptcy trustee to ensure that all other available avenues are reviewed. The law also provides a “means test” to review what capability you may have to repay you debts.

If this legal test concludes it is feasible for you to repay, you may be forced to file under Chapter 13, instead of Chapter 7.

Under Chapter 7, most of your assets are sold to make partial payment on your debts and the rest are written off, with the creditors being prohibited from seek any further repayment. It can stay on a credit report for up to ten years, though seven is typical.

Your attorney must certify that what you say in the documents you use in court, including your income, is true.

This negative impact on your credit can be reduced with some sensible financial practices. Making all bill payments on time can be a large help, as most lenders look to the last year or two as an indicator of creditworthiness.

A secured credit card, which is credit backed by a bank account, can also be a large help in restoring credit after bankruptcy. It may be wise to start the credit restoration process as early as possible.

Not all legal assistance is created equal. You should retain a lawyer who clearly understands how to file for bankruptcy and how it will affect your credit. Just like you would want a specialist physician to perform a major surgery, you should find specialist help that understands the process and ramifications of your decision.

Once assistance is retained, refer all of your creditors to your lawyer. After your case is filed, they may not contact your directly, under threat of financial and legal penalties.

If you are considering filing for bankruptcy, do not use your existing credit lines or seek to expand them, or else the court may exempt that “system gaming” from the bankruptcy write-offs.

After filing a petition with the court, you will be required to hold a creditors meeting and a trustee will review your assets to determine what is eligible to be sold (Chapter 7) and if you are able to work with a payment plan (Chapter 13).

After these steps are finished and the results returned to the court, a decision will be made about what debt should discharged. After that, your creditors have sixty days to challenge the decision regarding any particular account.

Certain debts cannot be written off in a bankruptcy. These include child support, student loans (except in severe circumstances), taxes (federal, state and local), and debts arising from driving under influence (DUI).

Knowing how to file for bankruptcy and how it will affect your credit before deciding to file can save you a lot of trouble and confusion.