Credit Line Financial provides a great newsletter this month with advice for understanding and dealing with credit collectors and bad debt in general. There is a huge industry in trying to collect on old debt, and what might surprise the consumer is how giving in to their aggressive tactics might actually harm your credit history... And some of these collectors are crossing the legal and ethical "do not pass" line (shocking!) in an effort to shake you for a few bucks. This is a good piece to review to keep you on your toes and aware of your credit health.
One note - in the finance business, we have a different definition for "bad debt" than in the credit business. Read the newsletter for an understanding of what they are talking about... In mortgage planning and financial management in general, "bad debt" generally refers to costly or prohibitive debt, whereas debt with low cost, or tax advantages is considered "good debt" to have. Its benefit is that it allows you to pursue other financial objectives through the power of leverage without weighing you down with the costs of borrowing. Contact me if you want to learn more.
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