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Tips to Get out of Debt and Rebuild Your Credit

Credit Bureaus Must Give You A Free Credit Report
The three major credit reporting bureaus (Equifax, Experian and TransUnion) have officially announced the website, phone number and mailing address for consumers that would like a copy of their free credit report. Currently, only consumers residing in thirteen western states are eligible. After September 1, 2005, everyone will have access to their free credit report. This law is being phased in over the next nine months and is starting on the West coast and ending on the East coast. To request your free credit report, visit (or bookmark this site if your state is not eligible yet) annualcreditreport.com or call toll-free 877-322-8228 or write to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Please see the complete state-by-state schedule listed below. >Full Article

FTC's Final Ruling For A Free Credit Report
Under the Fair and Accurate Credit Transaction Act (FACTA) and the Fair Credit Reporting Act (FCRA), the three major credit bureaus (Equifax, Experian and TransUnion) must provide consumers with a copy of their free credit report once every year. The law will be fully implemented by September 1, 2005. The schedule is as follows: By December 1, 2004 in the Western states (Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming). By March 1, 2005 in the Midwestern states (Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin). By June 1, 2005 in the Southern states (Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee and Texas). By September 1, 2005 in the Eastern states (Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, including Puerto Rico and all United States territories). >Full Article

New Check Clearing Law
The Check Clearing for the 21st Century Act, also called Check 21, was implemented during the end of 2004. This new law allows a bank to process your check faster. A bank now has the option to electronically transfer the image of your check instead of physically mailing it. Once an electronic image is received by your bank, the amount will be drafted from your account and paid. >Full Article

Mortgage Refinancing, Debt Consolidation and Home Equity Disasters
American homeowners have refinanced their mortgage, obtained debt consolidation loans and home equity loans to the extent of $330 billion since 2001. The main reasons are the high cost of living and the reliance on credit cards for daily living expenses. Millions of families have hoped that by refinancing their mortgage or by obtaining a debt consolidation loan they would be debt free for years to come. Unfortunately, this has not always been the case. Many families are once again burdened by high credit card debt and now have no equity to tap into. With no relief in sight, these families now face uncertain times and the possibility of losing their homes. In years past, owning a home meant stability and equity growth. Today, equity is being used as fast as it is accumulated. >Full Article

Bankruptcy Reform Bill (HR 975)
Bankruptcy reform legislation has still not passed. Credit card issuers, mortgage lenders and the auto financing industry have aggressively lobbied to have this bill passed for years. If and when passed, it would make it tougher for individuals to walk away from their debt. Instead, an individual would be required to repay a portion of what is owed through a court appointed debt repayment plan. >Full Article

Pay One Credit Card Late and Get Penalized By Your Other Credit Cards
Credit card companies make their fortunes from late fees, penalties and interest. Even more disturbing, and according to the latest research, is the fact that a very large number of credit card companies have adopted the universal default clause into their credit card agreements. This clause allows your credit card company to raise your interest rate when you make a late payment to any of your credit cards. >Full Article

FTC Verifies Credit Counseling Abuses
Credit counseling does provide many consumers with a much needed debt relief service. But, in some cases credit counseling agencies are not being up front with the fees that they charge and what type of service they actually will perform. In an FTC testimony before the Senate Committee on Government Affairs, the FTC commissioner Thomas Leary, stated that some credit counseling agencies are using their non-profit designation as a means to attract new customers, who are unfortunately then pressured into paying unnecessary fees, which may then be diverted and funneled to a for-profit company. >Full Article