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Building a Credit History: Why Good Habits Aren’t Enough

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Have you ever felt like you were doing everything right, only to be met with disappointment?

One of our legal assistants’ story is a perfect example. Despite paying her bills on time and in full, she struggled to get approved for a home loan because she had a thin credit file. She nearly hissed at the loan officer after being denied.

The Myth of Perfect Credit

Many people believe that simply paying your bills on time is enough to build good credit. However, this is a misconception. Credit bureaus look at your credit history, which includes the types of credit you’ve used and how long you’ve had accounts open. Monthly bills that are not related to a credit account are generally not reported to credit bureaus. If you have not built a good credit history you could have a hard time getting approved for credit.

Credit and real estate

The Importance of Credit History

A strong credit history is essential for securing loans, renting an apartment, and even getting some jobs. It’s a reflection of your financial responsibility and trustworthiness. Please keep in mind, credit reports are a fairly modern invention. The first credit score was introduced in 1989. Companies do need to have a seemingly fair way of evaluating someone’s history when they decide to loan or not to loan money. As a society we don’t want companies to rely on our looks, race or gender to decide if they think we are a good risk. Here in the US, the credit report and credit score don’t seem to be going anywhere. Instead, there is a complicated structure and rules that credit bureaus and information furnishers have to follow to remain compliant and protect themselves from lawsuits.

Limits of a Credit Score

Just like a high school student’s grade transcript, a credit score cannot tell anyone what you are going to do in the future. It can be looked at to predict how likely you are to default on a debt. Some kids do better when they are in college than they did in high school. A new environment can distance the student from people or things that made it hard for them to be successful. Taking classes in topics you enjoy can get you better grades. It can be this way for credit. Maybe moving into your own home helps you choose to save money by making food yourself instead of ordering. Maybe you had been renting from a bad landlord and had to leave the conditions of the terrible apartment building for you and your family’s safety. There could be a million possible reasons for something negative to appear on your report. It may not even be your debt showing up.

Credit Score rating based on debt reports showing creditworthine

Please remember that your credit score is not a summary of who you are. Just like that high school transcript, it is a recorded history of how you did during a specific time period. It does not actually have any real bearing on how you will behave moving forward. It is only the best tool companies have to try and guess.

How to Build Credit

If you’re starting with a thin credit file, here are some steps to take:

  1. Get a credit card: By using it responsibly and making on-time payments, you can build your credit history.
  2. Use your credit wisely: Pay your bills on time and in full. Minimum payments are not a default goal. Always try to pay your card off in full or as close to it as you can each month.
  3. Monitor your credit report: Regularly check your credit report for errors and take steps to correct them. (www.AnnualCreditReport.com)

Remember: Building credit takes time and patience. Don’t get discouraged if you don’t see results immediately.

By following these tips and taking proactive steps, you can establish a strong credit history and unlock the doors to financial opportunities.

In case you are like me and hope for a happy ending: yes our legal assistant was able to make a few tweaks to her financial life. She built her credit positively and is now living in her very own home.

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Why High Earners Should Consider Debt Settlement Now

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The economy is showing signs of stabilization, but for many individuals, the lingering effects of the pandemic continue to impact their finances. High earners, in particular, may find themselves burdened with unexpected debt due to job changes, medical expenses, or other unforeseen circumstances.

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While high earners often have the resources to make significant debt payments, continuing to carry a heavy debt load can have long-term financial consequences. Here’s why it might be advantageous to consider debt settlement services:

  1. Reduce Interest Payments: High-interest debt can significantly impact your monthly budget. Debt settlement can help you negotiate lower interest rates or even eliminate interest payments altogether, freeing up more of your income.
  2. Avoid Bankruptcy: While bankruptcy can provide a fresh start, it comes with significant consequences, a high earner may not qualify for a Chapter 7. Debt settlement can be a more strategic approach to resolving your debt without resorting to bankruptcy.
  3. Protect Your Assets: If you’re a high earner, you likely have valuable assets. Debt settlement can help you protect these assets from creditors, ensuring your financial future remains secure depending on the laws in your state and your attorney’s advice.
  4. Gain Peace of Mind: Living with a heavy debt burden can be stressful and overwhelming. Debt settlement can provide you with the peace of mind that comes from knowing you’re taking proactive steps to resolve your financial challenges.

Please know that not making payments will drop your credit score dramatically. The question becomes how much is your credit score worth to you?

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How National Legal Center Can Help

At National Legal Center, we specialize in helping high earners navigate complex debt situations. Our experienced attorneys can:

  • Assess your financial situation: We’ll analyze your income, expenses, and debt to determine the best course of action.
  • Negotiate with creditors: Our team will work tirelessly to negotiate favorable settlement terms on your behalf.
  • Create a personalized debt resolution plan: We’ll develop a tailored strategy to help you achieve your financial goals.
  • Provide guidance and support: We’ll be there every step of the way, offering advice and support as you work towards a debt-free future.

Don’t Let Debt Hold You Back

If you’re a high earner struggling with debt, don’t hesitate to reach out to National Legal Center We can help you regain control of your finances and achieve your financial goals.

Schedule a free consultation today!

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Fixed Income Asset Protection: Safeguarding Your Financial Peace of Mind

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For individuals living on a fixed income, managing debt can often feel overwhelming. Unexpected financial challenges arise, and soon, you may find yourself juggling increasing debt while dealing with harassing calls and letters from creditors. Or you may be making ends meet today, but increasingly worried about how you’ll cover bills in the future with the astronomical rises in the cost of living. At National Legal Center, we understand these struggles and have crafted our Fixed Income Asset Protection service to provide comprehensive legal support and financial relief to those in need.

Who We Are

National Legal Center is a multi-state consumer rights law firm dedicated to advocating for those facing financial hardships. Our mission is simple: we strive to protect the rights of individuals dealing with overwhelming debt, ensuring that they receive compassionate, ethical, and accessible legal representation. Over the years, we’ve helped thousands of individuals across the country reduce their debt and regain control of their financial futures.

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Our Fixed Income Asset Protection Service

This service was created specifically for those living on limited financial resources, such as retirees or individuals on disability, who are facing mounting debt challenges. Here’s how our process can help you:

  • Free Consultation and Personalized Debt Analysis: Every client begins with a complimentary consultation where our legal staff conduct a one-on-one debt analysis. We take the time to understand your unique situation and provide a personalized assessment of your financial standing and options.
  • Legal Guidance and Counseling: Our team of experienced attorneys have a deep understanding of Federal and State consumer protection laws. We work with you to explain your rights and identify exemptions that can safeguard your income and assets. With our strategic counseling, you’ll be better prepared to navigate your financial journey with confidence.
  • Relief from Harassing Collection Calls and Letters: One of the most stressful aspects of debt management is the constant barrage of calls and letters from creditors. Once National Legal Center steps in, we notify collectors of our involvement help ensure relief from harassing calls and letters. This allows you to enjoy peace of mind, knowing that we are handling the negotiations with your creditors on your behalf.
  • Increased Monthly Cash Flow: By following our attorneys’ guidance and enrolling in our low monthly payment plan, many clients find themselves with more disposable income. We work to ensure that you not only protect your assets but also improve your cash flow so that you can focus on what matters most.

Protecting Your Future, One Step at a Time

Our goal at National Legal Center is not just to help you survive today’s financial hurdles but to empower you with the tools and legal support to secure a stable financial future. Whether it’s stopping harassing calls or providing strategic legal advice, we are committed to easing the burden of debt so you can focus on living your life without the constant fear of financial ruin.

Get Started Today

If you’re living on a fixed income and struggling with debt, now is the time to act. With a free, no-obligation consultation, National Legal Center is ready to step in and help you take back control of your finances. Reach out today and discover how our Fixed Income Asset Protection service can give you the peace of mind you deserve.

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The Power of Paper: Why Documentation is Crucial in Debt Resolution

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The Power of Paper: Why Documentation is Crucial in Debt Resolution

In today’s digital world, it’s easy to overlook the importance of physical documents. However, when it comes to debt resolution, every piece of paper can be a valuable asset.

Why Documents Matter

Creditors’ letters can provide essential information about your debt, such as:

  • The balance of your debt: Knowing the exact amount owed is crucial for creating a repayment plan.
  • Debt ownership: Understanding if the debt has been sold to a collection agency can impact your negotiation strategy.
  • Settlement opportunities: Creditors may offer to settle the debt for less than the full amount.
Mail

Time is of the Essence

Promptly forwarding these documents to your legal team ensures they have the most up-to-date information to advocate effectively on your behalf.

Our Process

  • Thorough Review: Our legal assistants meticulously review all documents to identify key details and share with your attorneys.
  • Strategic Planning: We use this information to develop a tailored debt resolution strategy.
  • Proactive Approach: We stay informed of any changes in your debt status to ensure we’re always prepared.

Need Help Managing Your Debt?

Contact National Legal Center today for a free consultation. We’ll assess your situation and provide personalized guidance.

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Debt Monster

Debt: The Monster Under Your Kid’s Bed

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Debt: The Monster Under Your Kid’s Bed

Let’s talk about the elephant in the room, or rather, the monster under the bed – debt.

It’s that pesky, shadowy creature that seems to grow bigger the less attention you pay it. You know the drill: minimum payments, endless statements, and a growing sense of dread.

It’s time to shine a light on this financial boogeyman and reclaim your peace of mind. Imagine a world without the constant stress of looming bills. A world where you’re in control of your finances, not the other way around.

Imagine this: You’re tucking your kids into bed, reading them a bedtime story, and trying to ignore the looming shadow of debt. It’s not exactly the peaceful scene you’d envision. But the truth is, debt can seep into every corner of our lives, including our homes and our hearts.

Debt Monster in Chains

You want to help your kids develop their independence. Whether it is their first apartment, buying their first home or even college costs, life will be more expensive for our kids than it was for us.

Every time you use money to make yourself feel better, you are teaching your kids to self soothe the same way. After a hard day of work, eating at restaurants, or even ordering DoorDash seems like a good idea, but those fees add up. Or maybe your vice is online shopping?

This is a time with so many conveniences. We must remember not to use all of the shortcuts all of the time. Teach your kids to be patient and to plan ahead. Look forward to things that cost money instead of just expecting them. Practice gratitude.

By spending less on a regular basis, you are raising your family to spend wisely. The best place to start slaying the debt monster is to learn how to spend less.

We get it. Dealing with debt can feel overwhelming. But you don’t have to face it alone. Our team of debt resolution experts is here to help you slay this financial monster.

It’s time to reclaim your financial well-being and create a brighter future for your family. Stop sleeping on your debt.

National Legal Center specializes in helping families break free. We understand the challenges you face, and we’re here to help.

Don’t let debt steal your family’s peace of mind. Contact us today for a free consultation.

Let’s work together to turn that financial nightmare into a sweet dream.

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Crash Dieting vs. Budget Boot Camp: Why Slow and Steady Wins the Race (to Your Goals!)

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Let’s talk about goals. Maybe you’re looking to shed a few pounds, maybe you’re trying to tighten up your finances, odds are maybe both. Either way, you’ve probably seen those intense plans promising quick results. Crash diets with nothing but kale chips and sadness, or budget boot camps that have you clipping coupons until your fingers bleed.

But here’s the thing: Most of us aren’t built for that kind of drastic change. It’s like trying to run a marathon after spending a year on the couch (although, major props if you can!). Those crash-and-burn tactics might get you a quick win, but they’re rarely sustainable.

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Think about it: Would you rather have a dessert-free week of misery followed by a guaranteed return to pizza and ice cream? Or, would you prefer to swap sugary drinks for water and slowly see the pounds melt away (along with your cravings)?

The same goes for your wallet. Slashing all your expenses to the bone might work for a month, but eventually, the urge to splurge will hit you like a rogue shopping cart in the cereal aisle.

So, what’s the secret weapon? Small, sustainable changes. Here’s how it works:

  • Baby steps: Instead of a complete overhaul, try packing a healthy lunch twice a week. Small wins lead to bigger motivation!
  • Find what works for you: Love burritos? There are healthy versions! Hate budgeting apps? Try a good old-fashioned notebook.
  • Make it a lifestyle, not a punishment: Focus on building habits you can maintain, not temporary restrictions that leave you feeling deprived.
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It might not be as flashy as a “10 Pounds in a Week!” headline, but slow and steady progress is what gets you to your goals in the long run. After all, nobody wants a wardrobe full of clothes they can only wear for a week, or a bank account that looks like it went on a shopping spree.

A mindset of deprivation leads to cravings, whether that means food or a new purse. You may have heard it before but it bears repeating: start small. Take inventory of where you and your habits are now. This is the hard work. It requires honesty.

So ditch the crash course and embrace the marathon mentality! What small changes are you making towards your weight loss or budgeting goals?

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Minimum Payment Trap

Ditch the Debt: Why Minimum Payments Are Your Worst Nightmare

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Let’s face it, debt can feel like that annoying gym buddy who keeps asking to spot you on weights you know you can’t handle. You keep making the minimum payments, feeling good about “showing up,” but the debt monster just keeps growing. Sound familiar?

Here’s the truth: minimum payments can be a trap. They might seem manageable at first, but they’re designed to keep you in debt for way longer than necessary. This means more money wasted on interest, and less cash for the things you actually want – that new grill, a killer weekend trip, or finally buying out the rest of your fantasy football league.

Past due notice

Think of it like this: minimum payments are like putting a Band-Aid on a gunshot wound. Sure, it stops the bleeding for a second, but it’s not a real solution. Here’s why you need to ditch the minimum payments and take control:

  • The Minimum Payment Maze: Those tiny payments barely cover the interest, meaning you’re essentially paying to stay in debt. It’s a never-ending cycle that can leave you feeling frustrated and defeated.
  • Credit is Temporary: Taking a proactive approach to tackle your debt might involve a temporary dip in your credit score. But guess what? Climbing out of that debt hole and showing a history of responsible credit management will boost your score back up.
  • Freedom Feels Amazing: Imagine the feeling of crushing your debt and having that extra cash in your pocket every month. No more feeling chained to those minimum payments. You’ll have the financial freedom to pursue your goals and interests, becoming the master of your own financial destiny.
Happy with debt control

So, what are you waiting for? Here are some action steps for becoming a debt-slaying champion:

  • Track Your Spending: Knowledge is power. Figure out where your money’s going and identify areas you can cut back on.
  • Create a Budget: This is your battle plan. Allocate your income towards bills, debt payments, and some well-deserved fun money.
  • STOP Taking on Additional Debt: Living off of the cards delays the inevitable default. Try to live well within your means.
  • Pay Double the Minimum or More: If you can afford it, this is the fastest way for you to get debt free without negatively impacting your credit.
  • Explore Debt Consolidation: This can simplify your payments and potentially lower your interest rate.
  • Explore Debt Resolution with National Legal Center: This can stop you from digging the hole deeper and help you get a fresh start.
  • Consider a Side Hustle: A little extra income can go a long way in accelerating your debt repayment.

Taking control of your debt might seem daunting, but trust me, the long-term rewards are worth it. Ditch the minimum payments, break free from the debt cycle, and become the financially strong person you were always meant to be. Now go forth and conquer!

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Same Sweater, Different Debt Drama: Why Your State Matters (Especially When You Can’t Pay)

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Let’s talk about debt collection – a topic that can make your wallet sweat and your phone vibrate like a hummingbird trapped in a blender. But here’s the thing: how debt collectors can come after you actually depends on where you live.

Imagine you snag a sweet deal on a new sweater at JCPenney, swipe your plastic, and head home feeling fabulous. In most states, the legalities of that purchase are pretty straightforward, regardless of where you live. The jacket’s the same, the price is similar, and even the interest rate on your card likely falls within a predictable range. Taxes might differ slightly, but that’s about it.

Young blonde woman customer choosing sweater smiling at clothing store

But things get messy when you can’t pay that bill on time. Suddenly, state lines become a minefield. In some states, original creditors are limited in how often they can call you. Others? Well, they could be blowing up your phone a hundred times a week, and there’s not much you can do about it.

Here’s the deal: traditionally, contract law (including debt collection) was a state-by-state game. This meant some states had your back, limiting how often collectors could call you.  Other states? Forget it, your phone might sound like a frantic bird for a week straight.

But the world’s changed – online agreements, national lenders, giant banks lending and collecting everywhere. So, federal law stepped in a bit with the Fair Debt Collection Practices Act (FDCPA). This law helps protect you from harassment by collection agencies.  But here’s the catch: it doesn’t apply to the original creditor themselves, only those debt collection companies.

State Law – finance/economics. Man carries a stack of 3 file folders. A folder has the label State Law. Business, statistics concept

Even the scary stuff, like lawsuits, have a different impact in different states. Some states don’t allow wages to be garnished for credit card debts, while others do. The moral of the story? While some things might seem universal, like a comfy sweater, the legal landscape around debt collection can vary depending on where you live.  So, if you’re facing debt collection issues, knowing your state laws can be a real power move.

The next time you’re considering getting help with your debt, state law knowledge matters. Especially when it comes to debt collection and that sinking feeling in your stomach (and possibly your phone). 

If you’re worried about debt or dealing with aggressive collectors, don’t hesitate to reach out to us.  We can help you navigate the legalese and fight for your rights, with an attorney licensed in your state!

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Conquering Debt: Why Finding Your “Why” is the Secret Weapon You Need

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When I started law school a professor asked our class to figure out why we went through the daunting task of getting in and going to law school. She said that when it gets difficult and we want to quit, we should look back at our why and it will help us keep going.

Let’s face it, tackling debt can feel like climbing Mount Everest in flip-flops. It’s daunting, exhausting, and sometimes you just want to throw in the towel and build a snow fort at base camp (debt snowball, anyone?). But before you succumb to the allure of financial hibernation, consider this: finding your “why” can be the key to unlocking the motivation you need to reach the summit (debt-free status!).

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Why is “Why” So Important?

Imagine you’re training for a marathon. Sure, the finish line medal is cool, but what truly drives you to hit the pavement each day? Maybe it’s a desire to improve your health, raise money for charity, or simply prove something to yourself. That deeper purpose, your “why,” is the fuel that keeps you going when the miles feel endless.

The same principle applies to debt resolution. Understanding your “why” provides the motivation to stick to your budget, resist impulse purchases, and stay committed to your repayment plan.

Here are some powerful “whys” to consider:

  • Financial Freedom: Visualize the peace of mind and security that comes with being debt-free. Imagine vacations without the worry of credit card bills, or finally buying that dream home.
  • A Brighter Future for Your Family: Are you working towards a college fund for your children, a secure retirement for yourself, or simply a more comfortable life for your loved ones? Debt resolution paves the way for these goals.
  • Building Credit & Confidence: Debt can take a toll on your credit score and your self-esteem. Crushing your debt allows you to rebuild both, opening doors to better opportunities and financial peace of mind.
  • Leaving a Legacy: Debt resolution doesn’t just impact you – it can impact future generations. By eliminating debt, you’re setting a positive example for your children and giving them a head start on their financial journey.
A person crossing the finish line of a race with "debt-free" as the ultimate goal.

Finding Your “Why” and Taking Action

Once you identify your “why,” write it down and keep it somewhere visible. This constant reminder will fuel your motivation during tough times.

Here at National Legal Center we understand the emotional and financial challenges of debt. We don’t just help you resolve debt, we empower you to achieve your financial goals.

Take the first step towards a debt-free future. Contact National Legal Center today for a free consultation. Let’s help you find your “why” and develop a personalized strategy to conquer debt and achieve financial freedom.

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Hitched With a Hitch? Prepping Your Finances Before Saying “I Do”

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So, you’ve found your lobster (or bagel, or soulmate, you get the idea) and wedding bells are chiming! But before you get swept away in the whirlwind of cake tastings and venue hunting, let’s talk about something equally important: money matters.

Let’s face it, finances are a major factor in any successful marriage. Here at National Legal Center, we’re all about setting you and your partner up for a smooth financial ride after the “I do’s.”  So, grab a glass of bubbly (or your favorite beverage) and let’s dive into some essential pre-wedding financial prep.

Animation of bride and groom with piggy bank

The Big Reveal: The Money Talk

Yes, it might not be as glamorous as picking out wedding colors, but an honest conversation about finances is crucial. Discuss your current financial situation, including:

  • Income and Expenses: Be open about your income, debt (student loans, car payments, etc.), and spending habits.
  • Financial Goals: Do you dream of buying a house? Traveling the world? Talk about your long-term financial aspirations.
  • Debt Management Strategy: How will you tackle existing debt together? Creating a joint debt repayment plan shows commitment.
Couple creating budget and financial planning

Merging Money (or Keeping it Separate?)

This is a personal choice.  Will you combine all your finances into one account?  Keep some separate accounts for personal spending? Discuss what works best for you as a couple.

Budgeting Bliss (Okay, Maybe Not Bliss, But Stability!)

Creating a joint budget helps you track income, manage expenses, and work towards those shared financial goals. There are plenty of budgeting apps out there to make this easier!

Credit Check-Up

Before you apply for a joint mortgage or other loans, check your credit scores. Addressing any errors or taking steps to improve your credit score can benefit you both financially down the line.

Couple creating budget and financial planning

Remember:

Communication is key! Talking openly and honestly about finances before marriage can prevent future conflict and set you up for a financially secure and happy future together. Keep in mind, invest your money and time in the marriage, not just the wedding.

Contact us to create a plan to resolve your unsecured debt so you can both have a fresh start, together!

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The Law Office of Fox, Kohler & Associates, PLLC | dba National Legal Center aka NLC | employs one or more licensed attorneys in:

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National Legal Center is a tradename of the Law Offices of Fox, Kohler & Associates, PLLC, a NH law firm, PO Box 835, Candia, NH 03034. Rosanna Fox is admitted to practice law in NH, Arthur Kohler is admitted in MA. Results may vary based on the circumstances of your case. Not available in all states. This is Attorney Advertising Material and is not intended as legal advice.