Debt Management

Free Monitoring of Your Credit Report Year Round

Well it has been more than a year since I last checked my credit score, so I decided to go ahead and get my free report for the year. Last year I was a little unclear on what I was legally entitled to. I imagine that some of the Debt Wrench readers might find this system a little confusing too. With all the scams and companies out there that claim to give you a free report(among other things) there is need for clarification. So let me clarify to the best of my knowledge. I would also encourage you to do some reading on your own to verify all the information shared here.

• You are legally entitled to get one free credit report from each of the three national credit bureaus (Experian, Equifax and TransUnion) per year. This is a federal law.
• They are legally obligated to give you that information once a year for free.
• If you want to know your “credit score” (aka FICO score) you will have to pay extra. I paid around 8 bucks for my score from Equifax.
• There is only one site that is authorized to get your three free annual credit reports under federal law. Which is AnnualCreditReport.com. (see FTC website)
• You can go to each individual website of the 3 national credit bureaus for your credit reports. In fact Annualcreditreport.com really just redirects you to each website. It is more convenient to get all three reports at Annualcreditreport.com, because you don’t have to fill out the information 3 different times on each of the three credit bureaus’ websites. The website will “autofill” your information as you are redirected to the individual bureau website.

How do I monitor my credit reports for free year round?

Well it is simple only request the report from one of the 3 bureaus at a time.  If you space out your requests 4 months apart you’ll have monitored your credit report all year compared to if you only checked all three at once.

This is the cheapest method to monitor your credit report and unfortunately it isn’t the best. But if you are like me you hate paying people to find out what  records they are keeping on you then this might be the method for you.  Here are a few of the disadvantages I can see to this method.

• Not all creditors report to all three bureaus. One report might not fully reflect your entire score/credit history.
• Checking your reports only three times year might not catch identity theft among other things in time. However it is far better than once a year or never.

Below is some if I pulled for the Federal Trade Commission.

What is AnnualCreditReport.com?

AnnualCreditReport.com is the ONLY authorized source to get your free annual credit report under federal law. The Fair Credit Reporting Act guarantees you access to a free credit report from each of the three nationwide reporting agencies — Experian, Equifax, and TransUnion — every twelve months.  The Federal Trade Commission has received complaints from consumers who thought they were ordering their free annual credit report, but instead paid hidden fees or agreed to unwanted services.  Don’t be fooled by TV ads, email offers, or online search results.  Go to the authorized source when you request your free report.

How do I request my free credit report?

You can request your free report online, by phone or by mail. Visit AnnualCreditReport.com, call 1-877-322-8228, or fill out the Annual Credit Report Request form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.  No matter how you request your report, you have the option to request all three reports at once or to order one report at a time.  By requesting the reports separately, you can monitor your credit more frequently throughout the year.

Why should I request my credit report?

Because the information in your credit report is used to evaluate your applications for credit, insurance, employment, and renting a home, you should be sure the information is accurate and up-to-date.  In addition, monitoring your credit is one of the best ways to spot identity theft.  Check your credit report at least once a year to correct errors and detect unauthorized activity.

What should I look for when I review my credit report?

If you see accounts you don’t recognize or information that is inaccurate, contact the credit reporting agency and the information provider.  For more information, read the FTC’s tips on how to dispute credit errors.

If you suspect identity theft, you may need to place a fraud alert on your credit report, close compromised accounts, file a complaint with the FTC, or file a police report.  Start by visiting the FTC’s identity theft website.

FTC Seeks Comments on Proposals to
Amend ‘Free Credit Report’ Rule<
The Federal Trade Commission is seeking public comment on proposed amendments to the Free Annual File Disclosures Rule, also known as the “Free Credit Report Rule.” The proposed amendments would implement a new law designed to prevent consumer confusion in advertisements for “free credit reports.” The amendments also would address certain practices that may interfere with a consumers’ ability to obtain the credit report that credit reporting agencies must provide for free under federal law. Learn more…

File a Complaint

The FTC wants to hear from you if you paid for what you thought was your free annual credit report.

SPAM

The FTC also wants you to forward us any unsolicited emails you’ve received offering you a free credit report. Send them to spam@uce.gov.

AnnualCreditReport.com will NEVER send you an email solicitation for your free annual credit report or use pop up ads.

Tell me what you think about this method of monitoring your credit report in comments below.

Changing the Way We See Money

Change the way you see money!

I recently read an article on MSN Money about how MP Dunleavey was able to pay off $30,000 of debt. What struck me was how simple the approach she took was. I think that it would be worth while to look at the tools she used to get rid of her debt.

However it takes more than just a certain approach, technique or tactic to change the way we behave financially. Unless we change our personal views on money we will never affect our long term bottom line. It takes a shift in our paradigm or the way we view the world around us. We have to look at money in a different light. Understanding what money can do for you and what is most important in you life can help you to learn what money really is.

Here is a small list of questions you can ask yourself about money. By truthfully answering these questions you can start to understand your personal views on money.

What does money mean to you?

What can money do for you?

What can’t money do for you?

Why do you want money?

Why don’t you have money?

Its also a good idea to ask why at least three time to your responses. Asking why will help you find your core values that drive you to action. Once you have discovered your core values that motivate you or the “why” the “what” will follow.

Once the “why” if fully defined and understood, you can move on to action or what you should do. The following items were taken from the MSN Money article I referred to above. They are “what” MP Dunleavey did to get out of $30,000 of debt after she had changed the way she saw money.

* Cut expenses.

* Budgeted, budgeted and re-budgeted.

* Identified and changed bad habits.

* Adjusted expectations for our lifestyle.

* Took in a roommate.

* Moved.

* Tripled and quadrupled our minimum credit card payments.

* Quit using the cards.

* Saved a cushion for emergencies.

* Relied on automatic payments.

* Switched to a superlow-interest card.

* Found ways to earn more money.

* Got honest with friends, family and ourselves about this priority.

Some of these might no work for your given situation (i.e. get a roommate or move) but most are very universal. To truly change our money woes we have to change our habits, how we spend, why we spend, and when we spend.  How we live must reflect the lifestyle we desire and our core values. After we have changed the way we think and act we must have discipline and perseverance to follow through with our goals.

The Only 2 Ways to Get Out of debt “The Right Way”

Get the Money you need.

That is right my friends, there are really only two ways to get out of the red and into oh so beautiful financial color black.
1. Make more money that you spend.

2. Spend less money than you make.

In other words:

Income > Expenses

Expenses < Income

Well if is so simple how come the vast majority of Americans have so much debt. The reality is that in practice we find that most normal individuals have a much more complicated situation. The same dilemma occurs for many that struggle with weight loss. All they have to do is eat fewer calories than you burn or burn more calories than you eat, right? With money and weight they both require discipline and certain amount of knowledge. Understanding which foods are conducive to weight loss correlates with knowing how to use your money to get rid of debt. Finding time to exercise can be difficult. Likewise earning some extra cash to pay off that ever increasing credit card bill can be just as hard.  On top of that most people do not make a lot of money and  it is hard to meet the demanding challenges that face us in this unstable economy. Others may make more money but find it hard not to “keep up with the Joneses.” While they might be keeping up with the Joneses by buying all kinds of cool new things (with other people’s money), the last think they are keeping track of is the check book and their expenses.

I have found a program that with help you with both. If you can implement both “right ways” of getting out of debt you will make it far into the black  much faster. By keeping track of your debt and expenses you can forge forward with direction and discipline. You will also be given the opportunity to help others and in doing so you will be rewarded financially with a very exciting compensation program.

Visit Wake-upNow.com and enroll now!