Red Phoenix Nation!!! Greetings to you all!!! I want to chat to you today about competition! Competition you say?!?! Whatever do you mean Johnny Phoenix?!?! I'm out in the world every day looking to help people and it seems a lot of people want to compete for who has the worst situation of them all. Like its the heavy weight title or something and I couldn't be more serious about this. In the words of Tommy boy, "let me tell you why I SUCK!"
So when I hear this type of commentary I feel bad. I feel bad because I've lived those days and walked that walk. But my situation was way worse! hahaha :) see what I mean? So here is a few tips when dealing with collection, law firms and whoever else is calling you for money. FUN FACT TIME! When trying to settle with a collection company, this time of year is the best time. Odds are you will get 20 cents on the buck and they will give you a paid in full letter. We like the paid in full stuff, helps your score a lot. Settle around tax time because that's when you have money via a return?!?! .85 -.80 cents on the dollar! They know that's when you have money too! Get it?!?! Either way, settle when you can and get a paid in full letter. Account settled for less than full balance is like having the debt still sitting out there. It really doesn't do you much good and should be a last resort.
Student loan debt! If you look at Red Phoenix Consulting on Facebook I have more detailed info there. However, here is the quick hit about those pesky loans. If you are behind, you can get hardship or even an extension on deferment. If you were behind, that's okay. When you make 12 consecutive payments on time they will delete your negative pay history. This helps your credit rating and allows you to get more aid if needed.
Credit card debt: I recently helped a client with her Chase Visa, here is what the deal was. Owes $14,387, ya that sucks a lot! I called and chatted with the rep, it was an easy conversation for me knowing it is fiscal year end for a lot of companies. SO! She owed those bucks, interest rate was 27% and mounting. By having a simple conversation with the bank here is what I got done. Reduced debt to $13,125, interest rate reduced to 0%, fixed payment of $225 for 5 years. After 3 payments they agreed to report the account as closed by consumer and report the payments as paid on time and convert the debt into a "loan" not a CC. Meaning this debt is now reporting as an installment loan with positive pay history as long as she makes her payment on time. WINNER! It is a payment she can afford, she gets the debt under control, it reports as a positive and she wins with 0% interest. Read that deal again and call me if you need it explained. I don't type with clarity all that well. Point is, a simple conversation can help you win the credit and debt battle. This account is no longer a bad mark on her credit and now it is back to helping her credit! It is the time of year to do this, what I mean by this? A simple conversation with your creditors! .20 cents on the dollar or get a situation like I just described.
I hope everyone makes it great today, I wish success for the Red Phoenix Nation! If you need me, I'm always around....
john@redphoenixco.com
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