Help With Credit Card Debt
When it comes to help with credit card debt, we recommend Dave Ramsey’s 7 Baby Steps. Dave Ramsey is one of the most popular personal finance gurus in the United States, he is renowned for his no nonsense approach to personal finance. Dave say’s “You will get out of debt the same way you learned to walk—one step at a time”.
Here are Dave’s Ramsey’s Seven Baby Steps To Financial Freedom.
1). Start a $1000 Emergency Fund.
Your emergency fund is for life’s unexpected events, like losing a job, a car repair, a trip to the Doctor. It’s not if these emergencies will happen, it’s when! What you’re trying to do here is to stop adding new debt to the pile while you are paying off the old. Your $1000 emergency fund is to keep you from more borrowing and break the cycle of debt!
2). Pay off all debt starting with the smallest balance first.
Yes you have a pile of credit card debt, cards with big balances, some with smaller balances, some with higher interest rates, and others with rates that aren’t too bad. Dave recommends you pay off credit card debt using the debt snowball by paying off the small balances first, regardless of the interest rate. Dave say’s “You need some quick wins in order to stay pumped up about getting out of debt”! Plus, as you pay off each smaller card, you have more money to throw at the remaining ones. Please note that step 2 is key for help with credit card debt.
3). Build your full emergency fund of 3 to 6 months of expenses in saving.
As you pay down your debt, start saving for 3 to 6 months of living expenses. Again, the goal is to break the cycle of debt and learn how to pay for everything in life with cash.
4). Invest 15% of household income into Roth IRAs and pre-tax retirement funds.
Now that the debt is gone, it’s time to look to the future. Try to save 15% of your household income into tax saving Roth IRA or company sponsored deferred compensation plans.
5). Grow your children’s college fund.
Give your kids a great start in life with a college education.
6). Pay off your mortgage early.
By the time you are ready to retire, have that mortgage paid off.
7). Build wealth and give to charity.
Continue building wealth through the years but please do not forget to give a percentage to your favorite charities.
You may also want to check out Dave Ramsey’s Total Money Makeover book. It provides you with helpful charts and graphs to help you keep track of your debt reduction progress while following the steps in the book. When it comes to help with credit card debt, Ramsey provides the hard truth about what it takes to become debt free.
Best of luck to you while you’re paying off your credit card debt and begin building real wealth!
How To Dispute a Credit Report
Under the FACT Act, credit reporting agencies have an obligation to help keep accurate information in your credit report file. But you must first do your part by reviewing your credit report at least once per year, and then informing the credit reporting agencies of any discrepancies you may find. You may be surprised at some of the information that is in your credit report.
Credit report errors may include any outdated in formation of more than 7 years old, 10 years if you had a bankruptcy. Also check for names that are not you, wrong social security number, accounts that are not yours, addresses where you have never lived, and any credit inquiries that you did not authorize.
The three consumer reporting agencies, Equifax, Experian and TransUnion, have 30 days to investigate, give you a written report of what they found and a copy of any corrections made to your credit report file.
You can dispute a credit report by telephone, by mail or through the credit bureau’s website. It is easiest and best to start a dispute at the credit bureau’s website. Second best is by mail. If you dispute by phone, you would not be leaving an important trail of paperwork.
If the credit report dispute ends up unresolved, you have the right to place a 100 word statement in your credit report file explaining any information you feel is not correct. You may also use the statement to give reason for any history of late payments if you had a company layoff or if you were laid up with an illness.
You can also ask the credit bureaus to place a fraud alert in your file if you feel you may have been a victim of identity theft. Fraud alerts can make it more difficult for someone to get credit in your name because it tells creditors to follow certain procedures to protect you.
Knowing how to dispute your credit report is very important in order to keep your credit file accurate and your credit score high.