Making money: What the experts say

Cleaning up your credit report; A guide to responsible spending; Face up to debt collectors

Cleaning up your credit report

Disputing errors on your credit report can be a hassle, said Alex Veiga in the Associated Press, but it’s worth it. Free copies of your credit report are available once a year from the big three firms—Experian, TransUnion, and Equifax—via AnnualCreditReport.com. If you find a mistake, you can file a dispute online or by mail with the credit bureau, which is required to investigate and reply within 30 days. If you’re not getting anywhere, don’t be tempted by so-called credit repair firms, which “can’t do anything that you couldn’t do yourself.” Instead, try the Consumer Financial Protection Bureau—a new federal agency that regulates the credit bureaus and can help consumers who have problems with credit reports, credit monitoring, and complaints about debts.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

Face up to debt collectors

Quit dodging debt collectors and deal with them, said Karen Blumenthal in The Wall Street Journal. “The best way for borrowers to handle a debt they can’t pay is to talk with the lender as soon as possible.” When collectors call, pick up the phone and try to work out a plan to keep payments current. Keep detailed records—meticulousness can pay off if a collector decides to sue. If you’re being hounded for a debt that might not be yours, dispute it right away; “you have a 50-50 chance they won’t be able to provide any proof under the law,” said consumer debt lawyer Hans Thomas. If the case goes to court, hire an attorney and show up—the last thing you want is a court judgment, which debt holders can use to garnish wages and bank accounts.