How can I fix my credit...?

Question

I have 5 things on my credit that needs to be paid.

these things add up to about $1500.00 which isn't that much.

I've had some of these debts for 4 years... Yes it's very bad... but

I was married when I got these debts and never worked. They are in my name.. but I did go into debt because my husbands credit was maxed out.. so I took some slack. Shouldn't he have to pay or help me pay for these things? We were married for over 10 years.. and I never worked. He was the one that brought in the income. Im just wondering if he is liable for my debts? I feel that he should be since it was things that he used also. Im now divorced and my credit is ruined while his isn't... It really makes me mad.. My credit score ls over 600 but yet its not over 650. I want a better credit score and I feel if I pay those debts off myself.. It wouldn't help me anyway.. but I am looking to get married again and my fiance's credit score is over 800 on all 3..

will this hurt his credit score? Ive ask a lot of questions but I need to know how what I should do... any advice????

Answer 1

Your debt is just that "yours" you can't pawn it off on someone for emotional or even logical reasons. Your ex or your fiance are not liable for anything and don't have to pay it, it's your obligation. That's the down side of relationships gone wrong.

What you can do since the debts are kind of old is negotiate a pay for delete with each of the creditors when you pay them off, so that they'll be deleted from your credit report for good.

This will definetly boost your score and get rid of the nasties.

Here's little guide to help you along the way:

1 - If you haven't already get current copies of your credit reports from the 3 major bureaus (Equifax, Experian and Transunion)

2 - Take a photocopy of each and put the originals in a binder

3 - Get a highlighter and highlight any account that is negative (collections, written off, older than 7 yrs, etc...)

4 - Any inactive account that is older than 7 yrs should not be deleted from your report. Download a dispute letter from the credit bureaus website(s) and fill in the details

5 - For collection/overdue items, if they are greater than 7 yrs dispute them as well

6- If there are still valid debts, you need to contact the creditor and negotiate a 'pay for delete' in addition to a payment plan if you cannot pay in full. If they start hounding you send them a 'cease and dessist' letter stating they may only contact you in writing.

7 - Do not apply for any credit while you are doing this or for the next year (ideally 2)

8 - If you currently have any credit card or loan balances, pay them off or at least pay them down to bring them current

9 - If you need a credit card, get a secured card from Capital One for $500 (or more if you can)....use it sparingly for like only $25-50 and pay in full and on time every other month or so to establish good re-payment history.

A little patience and 2-3 months, you'll be on your way.

Answer 2

it sounds like you really need help trying to fix up your credit score. this is what i did because i was in the same situation. what you do is go to http://abe5.com/70q and input your information and they help put you on a plan to increase your credit score for the future and try to see what they can do for you now. They helped me a ton!

Answer 3

Your credit score is between 600 and 650 so it is not terrible credit. Of course there is room for improvement here. By paying off your debt it will certainly raise your credit score. The question about your ex husband paying off the debt - Well, who's name are the accounts in. Both of you? If so, you are both responsible for the debt as far as the creditors go, they don't care who pays them back as long as they get paid.

You might be able to fight some good information on what your looking for at:

http://get-credit-cards.blogspot.com

Answer 4

The fact that you did not work outside the home during the marriage is irrelevant.  In your divorce decree, who did the settlement say was responsible for these debts?  It sounds like you are responsible as part of the settlement. So you will just have to deal with them yourself.  If you are not working now then you need to get a job, either part time or full time.  If you have a full time job, then seriously consider getting a temporary part time job until you get this all paid off. If you get a $10.00 an hour part time job then it should only take you ten weeks or so to get this taken care of.  

Yes, your credit score will impact your finance's score when you marry so it is best to get this taken care of as sonn as possible

You can jump start your payoff by having a garage sale and selling anything that you no longer use. Here is a plan that will help you. If you work the plan, the plan will work for you:

1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.

2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.

3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:

To start :

Debt #1 (highest interest): minimum payment+ extra payment

Debt #2 (middle interest): minimum payment

Debt #3(lowest interest): minimum payment

Debt #1: paid off

Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment

Debt #3: minimum payment

Debt #1: paid off

Debt #2: paid off

Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.

That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.

4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.

5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.

5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.

5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest..