Question 3 0f 5 to help you get out of debt

"When can you get out of debt?"

Taylor, a client of mine, is a nurse who works the late shift at a hospital.

Her Ex-husband, Neil, was fast and loose with their joint credit cards, stacking up debt while sleeping around with another woman. Taylor found out about Niel cheating and filed for divorce.

Taylor's divorce had did major damage to her credit score. When her husband, Neil left he never mentioned the outstanding credit card balance on the joint account, and he had the bills sent to him, so Taylor wouldn't find out how he used the credit card. Neil, never paid his bills on time.

Taylor was stuck with a credit card with super high late fee's for a bill that she knew nothing about for a long time.

My client's and I cover a lot of personal subject's when we are on hold before negotiations.

While waiting on hold, I did a credit check up on Taylor by asking some questions and I found the problem. Taylor's problem was time. Taylor didn't have any time left. It took so long for financing that the owners of the home were talking to other buyers. Plus The Realtor wasn't returning Taylor's calls and she was suffering from Universal Default .

I explained Universal Default to Taylor and she asked me, "so that means that since I missed a few payment's my credit looks sick to lenders. I see, to the banks it seems like I've got signs of a credit flu, and they don't want to come near me, because they [the banks] don't want to catch my credit flu? "

I laughed for about a minute and then replied "exactly". I loved her example!

So then keeping Taylor's credit flu example in mind, I said, "as you know a flu can get better or worse depending on what you do". Getting over a flu is a process that takes time. If we could all snap our fingers and be flu-free, there'd be no need for painful flu shots. But we both know that fighting a flu takes time.

So Taylor asked me,

• "So when should I expect to get out of debt" and
  
• "What can I do to cure my debt flu"?

I answered , "pretend that someone comes into your hospital with the flu and they say they want to be cured 'immediately'. What would you say"

Taylor said, "I would tell them to start by getting plenty of rest and fluids and give it a few days. And that's all I could suggest, because there wouldn't be much else I could tell them"

I responded, "when you have a credit flu, time is the only real cure". I also told her "you will start to get out of debt as soon as you make the commitment to learning the credit and debt process and take action.

But in the meantime, to get her credit score in better health and her interest rates lowered, I suggested that Taylor do the following:

1. Make all payments on time for at least six months
2. Don't apply for any credit for 6 months
3. Don't close any open accounts

I told her that if she took my advice she would be cured of her credit flu in about six months.

What do you think? Share your comment's regarding any post you see here. Or if you have specific debt related or media inquires contact jcarltonford@yahoo.com




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