Q. Is there a way to erase your credit history and start over...?

A. As little as you want to hear that, the answer is there is no way around. The right way is to repair your credit history, and it's easier than many people think. First of all, in most cases, the creditors or collectors will agree to settle for 30%-50% of your original amount. So if you owe $6,000, you have good chances to settle for just $2,000. Call the banks and ask. Tell them you only have 30% of the full amount and are ready to pay (if you are of course). But if you have the full amount, don't tell them you do, because they will not extend a discount.

Make sure they agree to report to credit bureaus as "paid in full" (even though you didn't pay the full amount). In some cases they go for "settled", which means you only paid partially, but still to their satisfaction.

Surely, repairing credit will require discipline from you and won't be pleasant, but once you've done it you will see how your efforts are paid off. There are many more details about paying debt off and cleaning your credit record, I suggest you read them on this website.

Good luck! 

Moni.

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Moody  - Bankruptcy?   |68.83.220.xxx |2009-08-31 07:20:05 How about Bankruptcy? I know it is not the best wa y out, but maybe, just m aybe, sometimes it helps?   Some people say that bankruptcy is one of the t op five devastating negative events that people ca n ever go throug h, along with divorce, severe illness, disability, and loss of a loved one. But some think of it as the best, last way out.   Has anyone considered Bankruptcy here? Reply | Quote 2 0

Steve  - re: Bankruptcy?   |85.140.16.xxx |2010-04-17 14:09:21 Moody wrote: How about Bankruptcy? I know it is not the best wa y out, but maybe, just m aybe, sometimes it helps?   Some people say that bankruptcy is one of the t op  five devastating negative events that people can  ever go through, along with divorce, severe illness, disability, and loss of a loved one. But some think of it as the best, last way out.   Has anyone considered B ankruptcy here? Bankruptcy may be the best way out for companies.  Look how many times Tru mp trumped his casinos =) Reply | Quote 2 0

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