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info@nccrecovery.comNCC Recovery, Inc

The best defense in these turbulent times is to pay your bills on time and keep your outstanding balances on your revolving accounts (charge accounts) below 50% of their limit. If you find yourself in a difficult situation and you are being pursued by a bad debt recovery company, try to negotiate. Most debt collection agencies realize that times are tough and a willingness to pay goes a long way in resolving the bad debt. Also, negotiate on the debt collection agency reporting to the credit bureaus. Credit bureaus rely on the data supplied by the bad debt recovery companies or even healthcare receivables debt collection agencies to compile a credit profile on you.

1. Don’t shop on payday. Just because you just got paid doesn’t mean you have money. If you have a budget, stick to it. Before you spend a dime of that hard earned paycheck, take a look at your budget and see what kind of fiscal impact potential impulse buying may have on your bill paying ability. If you don’t have a current budget, now is the best time to create one. For Budget help go to the AHAA Website

• download Away from Her

for free sample budget sheets.
It is important to stick to a realistic budget to avoid past due accounts and possible referral to a debt collection agency.
Authored by:  NCC Recovery, Inc.download The Contract Killerdownload Adam and Eve

Improve your credit score. By improving your score you will save significantly on finance charges and interest rates. Avoid having any debt sent to a Bad Debt Recovery Company or a Nationwide Debt Collection Agency, these also have a negative impact on your score.

Your credit score is usually based on the answers to these questions:

Do you pay your bills on time? The answer to this question is very important. If you have paid bills late, have had an account referred to a nationwide debt collection agency, bad debt recovery firm or have ever declared bankruptcy, this history will show up in your credit report.

What is your outstanding debt? Many scoring models compare the amount of debt you have and your credit limits. If the amount you owe is close to your credit limit, it is likely to have a negative effect on your score.

How long is your credit history? A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.

Have you applied for new credit recently? If you have applied for too many new accounts recently, that may negatively affect your score. However, if you request a copy of your own credit report, or if creditors are monitoring your account or looking at credit reports to make pre-screened credit offers, these inquiries about your credit history are not counted as applications for credit.

How many and what types of credit accounts do you have? Many credit-scoring models consider the number and type of credit accounts you have. A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score.

To learn more, see the Federal Trade Commission publication on credit scoring. Excerpts taken from Facts for Consumers.

Authored by:NCC Recovery, Inc.