Bankruptcy: To Do or Not To Do

Society makes bankruptcy a dirty word, but knowledge and credit professionals can change all that.

I’m sure that I’ve written about this topic before and yet this week I received another call from someone who didn’t feel that ANY amount of help could help them and that they were going to need to file for bankruptcy.
Now, I must preface this by saying that I am not an attorney nor can I give legal advice, however, I have also shared my story where I have shared my ups and downs and in the realms of downs…yes, the dreaded filing of my own bankruptcy.
If any of you have been through a bankruptcy process, you will probably agree with me that the first place you start is a bankruptcy attorney. I will be so bold as to say that they are the LAST place you should go for advice because that is, in fact, their livelihood! (Live and Learn)
My immediate question for this person was, “What is the total of debt that you owe?”. At this point in my experience, it never surprises me that they don’t even know. Denial is an ingredient of poor credit. I continued to drive to get an answer and what I heard next is something again that did not surprise me. “Oh, probably about $10,000.00”.
Let’s talk about this…
What is Bankruptcy?
Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get relief from their debt. Bankruptcy allows individuals or businesses to either restructure their debts or absolve them completely. Typically, a bankruptcy filing stops all of your creditors from attempting to collect payments from you immediately or at least until your obligations are sorted out according to the law.
Why Apply For Bankruptcy?
When there are no other options available to you, filing for bankruptcy may give a much-needed opportunity to gain control of your finances. For example, bankruptcy may make it possible to:
  •   Stop wage garnishments and harassing phone calls and letters from creditors.
  •   Legally relieve you from most or all of your debts.
  •   Prevent a foreclosure or repossession of your car and allow you to catch up on missed payments.
  •   Prevent you from having your utilities shut off.
How Will Bankruptcy Affect My Credit Score?
If you have seriously considered filing for bankruptcy, chances are your credit is already in poor shape. However, since bankruptcy either wipes out your old debts or sets up a repayment plan, you will likely be in a better position to pay any current bills that you may owe. A bankruptcy will remain on your credit file for up to ten years, but you can begin to rebuild your credit history immediately by keeping your bills paid on time, not applying for excessive credit, and using only a small percentage of the credit limit available to you. Here is another article I wrote about “Utilization Ratios”.
Next week, I will cover the different types of bankruptcies as there are more than you probably think!
I’ll talk more about what it cannot do along with some alternatives. Definitely worth staying tuned!
So back to the opening story, it is important for me as a coach and credit professional to know the whole story. When it is you and you are that far into it, into the denial and into the overwhelm, you really do need outside professional guidance from the right source.
Bankruptcy can stay on your credit reports for ten years while other derogatory credit can drop off after seven years. There are always action steps you can take depending on your ultimate decision and I always recommend making an action plan and working your action plan.
Remember to check in next week for Part 2. Reach out to me if you have questions and remember…Knowledge is power!
Your Partner in Credit Restoration,
As always, if you have errors on your credit reports or items that do not belong to you and you are not having success getting them removed, please take action and contact me.

For questions or additional resources, please email: Info@CreditGal.CO

www.KimTheCreditGal.com

www.CreditGalKim.com

Written by Kim Burger ~ Credit Gal, Master Coach, and Field Trainer for Financial Education Services.

Information gathered from **FES (Financial Education Services) and United Credit**

Massively Correct and Improve Credit in 2018

Taking massive corrective action to improve your credit isn’t what we write to Santa for, is it?

Getting an extensive line of credit readily available on a free credit card with NO restrictions, NO negative effect on your credit score, and never having to pay it back…Now that’s what I’m talking about!

Yes, these are the dreams that dreams are made of and when it comes to credit and credit cards, it takes a lot more than dreaming, wishing, or writing to Santa.
Building your credit and using your credit wisely takes effort, knowledge and an action plan. I know that this time of year is always a difficult one and with only days remaining before the big event if we haven’t already made a budget and a spending plan, it most definitely is too late!
No worries, if you are anything like me, you start fresh at the start of each year and the first of the year is a great time to hit the “reset” button. Take a snapshot picture of where you landed at the end of the year and make a specific budget and action plan to correct any damage suffered (and I do mean suffered) and work towards a massive correction, improvement, and progress with your credit scores.
Here’s the gist of it. You can do a lot of damage to your credit score in a very short time, however, it takes a lot more effort and time to correct and improve your credit score. Seems so unfair I know, but it’s a fact.
The other fact is that you have to have credit and use credit in order to show you are a GOOD credit risk and get more credit.
When you want to make that large purchase using credit, like a home, a new car (or new to you), or maybe even new furniture, it sucks to find out that you either are denied the credit, you must pay more for the same amount of credit or you have a long road ahead of you to even obtain the credit requested.
Uhg! There is nothing worse to think about during the holiday season than to think about the damaging effects that we may be causing.
With all of this in mind…please be conscientious with your spending. I saw this cute little saying and it fits so appropriately here.

ACTION ITEMS FOR STARTING OUT THE NEW YEAR:

-Honestly, LIST your entire amount of debt and income.
-Complete a budget (Google it and use one that works on your software)
-Make a plan for repayment (I highly recommend contacting me to review your quick-pay plan)
-Write out a letter of commitment to yourself and share it verbally with your family (Going PUBLIC is the best way to ensure that you do what you say you will do!)
-Check in with yourself at each pay period and report back to your family each month.
There are more steps you can implement to ensure success and I am here to help you along the way. This is a short list to ensure that you start the process and if you are feeling overwhelmed, scale it back a bit but if you are ready to add more…let’s have that conversation. The first of the year is a great time to get all your financial items in order. If you are in need of a Will or Trust, we have the quick and easy solution.
Wishing you and your family the best this holiday season and reminding you that it truly is about the union and reunion of connecting with loved ones. The time that you spend together and the experiences are remembered for years and years to come!

REMEMBER…If you need additional information there is a Sign-Up Box on the right-side or at the bottom of this page where you can get a FREE Credit e-Book where you will Learn How You Can Win at the Credit Game & Save 10’s of Thousands of Dollars Over Your Lifetime!

Your Partner in Credit Restoration,
As always, if you have errors on your credit reports or items that do not belong to you and you are not having success getting them removed, please take action and contact me.

For questions or additional resources, please email: Info@CreditGal.CO

www.KimTheCreditGal.com

www.CreditGalKim.com

Written by Kim Burger ~ Credit Gal, Master Coach, and Field Trainer for Financial Education Services.

Information gathered from **FES (Financial Education Services) and United Credit**

3 Tips to Prevent Stress and Fraud

Tis’ the Season for Stress and Fraud

For many people, this is the season of love and giving. It is a joyful time with family and friends. It is a renewal and connection with our chosen beliefs and religions. It is the time of year of traditions and rituals. It is also the season of sales!
While most of us prefer to live in the snow globe of sugar plum fairies, ice-skating parties and making snow angels on a perfectly sunny day, it isn’t always so blissful.
Unfortunately, entrepreneurialism is thriving not only for those who do good things but also for those that live on the dark side and for a lack of a better term…play Mr. Grinch!
This season particularly is easy pickins’ for these dastardly thieves.
With the increased usage of credit cards, the increase in credit requests, the online shopping that takes place and the added stress of doing so much more during this time of year, it is no wonder that we easily become prey for those willing to take!
I have 3 steps you can take right now to help protect yourself. While it is virtually impossible to prevent fraud from happening but there are definitely steps that you can take to help reduce the chances of it being you.
Since this blog is all about credit…I am going to stay on topic. This could easily be an article with 100 things to do; however, that isn’t my goal here today. Today, we are going to tackle 3 easy to do steps in order to ensure that you take them and that you have a happier holiday season.
ACTION STEPS:
  1. Ensure that any credit requests are done over a secured internet line. This means that you are NOT using your smartphone, the local free Wi-Fi, or any unsecured line. If applying at a store and you are asked to complete a written application, once they input the information into their system ask to have the written application returned to you. There is no way to ensure that they are properly storing your information so it is better to be safe than sorry.
  2. Use RFID (Radio-Frequency Identification) blocking sleeves or wallets to protect against having your credit cards read and duplicated. These are very inexpensive items that can keep your cards protected even while they are on your persons. When in use, be aware of your surroundings and those around you. If using an ATM or credit card machine, pull on the device to make sure it is NOT a skimming device.
  3. Give to charities and not-for-profit organizations that you know and do it in person. During this time of year, many scammers are calling and preying on your heartfelt desire to give to others. They may use familiar organizations that you connect with and request your credit card or checking account information. Never ever give your information over the phone (or in person), if you wish to give, give in a form that is acceptable to you (cash or check) and only directly to that organization. Once a thief has your personal information, they will waste no time in cleaning out your accounts and selling your information to others.
As you can see, it would be very easy to make a list of 100 as this barely scratches the surface.

I encourage you to take a moment and write a comment below to share a personal experience that happened to you or another tip for our readers.

If you are feeling overwhelmed during this time of year and feel like it’s just not worth your time…think again because fraud, identity theft and having your accounts cleaned out is extremely overwhelming!
Here is a past blog on Identity Theft to give you more action steps.
If this is common sense items and that you have a great handle on your credit and your credit knowledge, I encourage you to share it with others and start your own credit business for some extra income now and ongoing. You can learn more by watching the videos at www.KimTheCreditGal.com and having a free coaching session with me to see if this is a good fit for you.
Your Partner in Credit Restoration,
As always, if you have errors on your credit reports or items that do not belong to you and you are not having success getting them removed, please take action and contact me.

For questions or additional resources, please email: Info@CreditGal.CO

www.KimTheCreditGal.com

www.CreditGalKim.com

Written by Kim Burger ~ Credit Gal, Master Coach, and Field Trainer for Financial Education Services.

Information gathered from **FES (Financial Education Services) and United Credit**

A Thanksgiving Gift

In the Spirit of Thanksgiving, I pondered on the question of HOW I can best serve you?

It’s a huge question because I serve Real Estate Professionals, Lenders and Buyers primarily as my focus and intention are to help people get into their dream homes.
Then, I thought to myself, I also serve entrepreneurs who like myself want to build a business that makes them feel good by helping people like I do.

Then, I thought…GIVEAWAYS! But, what kind of giveaways?

I already have a free e-Book on Credit that you can get by completing the form on this webpage. Or, the templates that I giveaway to people who want to start the process of cleaning up their credit by validating their name and address (you can get this one by emailing me at CreditGalofCO@gmail.com).
OR…I can give something new! Something visual! Something that you can watch and best of all…something that I normally charge for!!!
Since my purchase page is occupied with a purchase price…and since it is the day before Thanksgiving, the easiest way to do this is by emailing me. Email me from the email address that you wish to receive.
But wait…what are you getting?
You are getting a 6-day video series about the “5 Critical Credit Mistakes & How to Avoid Them”.
This 6-day series will be issued one each day and is designed to teach you the common mistakes that all of us make without knowing, and what you can do to prevent them.
It teaches you about the scoring system and how to get the biggest bang for your efforts.
It outlines the few areas that you need to focus on the most and it’s laid out in a fashion that makes it easy.
You know me by now and I’m not here to waste your time and give you bullshit advice. I am here to serve and in the spirit of Thanksgiving…serve for free!
Yes, you’re WELCOME!

With love and gratitude…HAPPY THANKSGIVING!

Your Partner in Credit Restoration,
As always, if you have errors on your credit reports or items that do not belong to you and you are not having success getting them removed, please take action and contact me.

For questions or additional resources, please email: Info@CreditGal.CO

www.KimTheCreditGal.com

www.CreditGalKim.com

Written by Kim Burger ~ Credit Gal, Master Coach, and Field Trainer for Financial Education Services.

Information gathered from **FES (Financial Education Services) and United Credit**

 

Credit Driving You Crazy?

What’s the worst thing that you have had thrown onto your credit reports?

-Bankruptcy?
-Charge-Off(s)?
-Judgement(s)?
I am currently gathering some information and concluding my research and had this wild notion to reach out to you, the people who have lived it.
I don’t know about you but I love listening to stories (and I hear my fair share of them) but it is definitely what makes my work interesting and intriguing.
Each one of us is like a snowflake, unique in our own experiences and stories. This is why I am reaching out to you and requesting your personal accounts of horror and dismay.
Who knows…Your story may be a topic for an upcoming issue!
Because I am interested in hearing from you, I am going to keep this short. However, if you are interested in hearing my story and what led me to do what I do…check out this blog here.
If you feel more comfortable in not making your story public and/or just don’t want it to be permanently plastered on the internet walls, I get that, it took a lot of healing, subconscious releases of heavy emotions and a lot of time for me to become brave enough to be transparent with all of you. It is because I am on a mission that I can do so. It is also because my desire to help other people has exceeded the pain of embarrassment.  They say when your WHY is bigger than you are, you can and will do what’s necessary.
So take a moment and share with me. I promise you it is therapeutic and there are steps that you can take that you may not be aware of or you just need the guidance.
Email me your story to CreditGalofCO@gmail.com and if you choose to give me permission to share your story, please write out your permission and release on the email. You may be chosen as a coaching session on this blog with actual action items and suggestions specifically to you!
If you wish it to remain private, that is perfect as well.
You are who you are based on all the experiences in your life. If one of those experiences feels more like a heavyweight or burden, I would suggest a coaching session to get you on the road to recovery.
Your Partner in Credit Restoration,
As always, if you have errors on your credit reports or items that do not belong to you and you are not having success getting them removed, please take action and contact me.

For questions or additional resources, please email: Info@CreditGal.CO

www.KimTheCreditGal.com

www.CreditGalKim.com

Written by Kim Burger ~ Credit Gal, Master Coach, and Field Trainer for Financial Education Services.

Information gathered from **FES (Financial Education Services) and United Credit**