The hunt goes on,,,

As some of you may have noticed, my posting of late has been dealing with my attempt to secure a job. I haven't had much to say concerning my debt reduction plan or living frugally. With no income, frugal living is a necessity. What little money I do have (savings and money earned through the paid to programs and surveys) is being used carefully. My household bills are minimal at the moment due to the generosity of friends; my only real expense is food. I will have to see what transpires this months as for utility costs, I expect they will increase based on the number of days I have been living in new apartment.

My debt reduction plans are on hold until I secure a job; it's impossible to pay down debt when one has no income. Once my employment situation improves I will re-visit my debts and begin making payments. In the mean time I will be taking a hard look at my method of payment, budgeting, and prioritizing my debts; I have some debts (ie. IRS) that I can no longer allow to hang around. I must decide how I want to re-pay my debts--pay a little each month to all debts or make one big payment to one debt till paid in full. I'm not sure how either method will affect my credit reports; it may be a moot point.

One task to do in the next few days, pull my Experian report from Quizzle. Need to see if new debt has been added since March. If my assumption is correct, and new debts have been added, I will start with the highest priority debts first and then work my way down to lowest priority debts.

My job search is still in progress; will have answers today concerning 2 possible positions. I am working on three cover letters and hope to have them sent out by 8/16/09. I do have a few applications to send out yet, but I'm waiting to hear the outcome of my calls before proceeding. There are still many more options to explore; compared to my situation in PA it's a good situation to be in. (Altho I would rather be working.)

Another task I need to complete soon, comparison shop for an eye exam and eyeglasses. I suspect that I will be using Zenni for my glasses, so that leaves the eye exam. Went to Wal*Mart and was shocked to find that it's $80 for an exam (without insurance). I do have a letter out to the local LIONS club but haven't heard from them yet.

I still have to finish my paper work for the hospital that treated my leg. Received nine stitches thanks to some idiot that threw a glass bottle out of their car window as I was walking by. The hospital assists self-pay customers in applying for public medical benefits. My one dilemma is some of my information needed is still in PA, it should be here in a few days. Thankfully my friend in PA has been willing to help with the cost associated with shipping my stuff; I'd be in deep doo if not for her assistance.

Trying to get back to Normal

Never try to fix a computer problem when your emotionally distressed and bored to boot. What a mess I made of my "bookkeeping". Have spent the past 2 days trying to re-create my files, regretfully I think I made big boo-boo.

Anyways,,,

I think I have re-built my debt reduction information. It's a bit leaner as I have removed some TBD that are over 10 yrs old. I also changed some categories a bit as my priorities have changed dramatically, I am planning a move so I need to sock away at least $3000 min which includes the purchase of a vehicle. The sooner the better!!

Here is a breakdwon of what I owe:

• ZOMBIE DEBTS (TBD)=$9845.59--lowest of priority to be paid off, but will be working to have them removed from credit reports if applicable.
• OLD DEBTS=$623.03--mid priority, as some are on credit reports some aren't, most are medical related, and some are as Dave Ramsey puts it "stupid tax".
• CURRENT DEBTS=$1009.86--incudles debt incured due to breakup. These are bills I have been making an attempt to pay during the last 12 months. They are "close" to current, but at least not with a collection agency.
• STUDENT LOAN=$65912.71--hope no one fainted (dont ever fall into the deferrment trap, better yet avoid student loans all together.) On a good note with my SL,,,,should be out of default in a few months.

It's a start at re-building on my own.

Pulled One of my Credit Reports

I have been doing a bit of reading/research concerning debt. I have written in the past concerning my past due debt and how I have decided to handle what I believed to be "zombie debts" or the more technical term TIME BARRED DEBT(S). Based on what I have read I have some digging to do (concerning credit reporting and Statue of Limitations), but I will share what I have found so far.

The biggest issue with "zombie debts" or "time barred debts" is the actual definition of STATUE OF LIMITATIONS (SOL) and what it entails. For starters a time barred debt (TBD) is a debt so old it is beyond the point at which a creditor or debt collector may SUE to collect. At this point the SOL (the time of commencing actions) comes in to play. It is simply the time allowed for litigation/lawsuits can be brought. It is a civil code and each state has its own statute. I live in Pennsylvania, our SOL is 4 years.

Based on this information I have 7 items listed on my credit report that would be considered timed barred debts. In actuality it is only 3 debts but 2 of them are listed twice and one is listed 3 times. In other words the original creditor is listed plus the 3rd party collection agency (from my understanding this is par for the course.)

The Fair Debt Collection Practices Act (FDCPA) does not prohibit a debt collector from trying to collect a TBD as long as they do not sue or threaten to sue you for the debt. [Note: Expired SOL is a defense to be used if you are sued!! The debt cannot be enforced by lawsuit; does not dismiss debt and can be reported on credit report up to 7 yrs.]

Another issue I found important to my situation is when the SOL begins. If you have never made a payment to your creditor the SOL for TBD starts when the first payment is due or at the onset of the contract signing. If you default on a debt that payment(s) have/has been made to, the SOL begins from the date of the LAST PAYMENT.

Issue number three deals with credit reports/reporting. My concern(s) in this area pertains to debts listed on my credit report(s) that are past the 4 year SOL and also 7 yrs old.

I found the following which both asks and answers my two concerns:
How do I remove a debt when the statute of limitations expires?

Credit bureaus can continue reporting delinquent debts even after the statute of limitations has expired. In a nutshell, the statute of limitations is the amount of time collectors can sue you for a debt. The CREDIT REPORTING TIME LIMIT is different. It's the amount of time credit bureaus can report delinquent account information on your credit report. The statute of limitations on a debt can expire before the credit reporting time limit for that debt expires. In that case, the debt can (and usually will) still appear on your credit report.

And,

Can I remove debt collections from my credit report?

If the collection is accurate, you technically can't have it removed. You might be able to negotiate with the collector to remove the item in exchange for payment. Unless they're actively collecting on the account, debt collectors are rarely concerned with keeping your credit report updated. So, if a new collector has the account or you've already paid, you can try disputing with the credit bureau. If the collector doesn't respond in 30 days, the credit bureau must remove the collection from your credit report.

So based on this information it looks as tho I am stuck with the dung of a credit report. The key now is to make sure nothing more gets added, and that is something that I can control by being diligent with my money. Al tho I may try and get 2-3 items removed since I would only be dealing with the reporting agent and not the debt collector

These two articles Should You Pay an Old Collection and Tactics For Paying Off Debt Collections will be helpful in the near future as I do have some debt that is more recent and I want to get them cleared (they are medical bills, and I would like to continue to use the services provided.)

Excellent Series of Articles

Step One Towards Getting Out of Debt

But before you begin, give yourself a break. No matter what your current financial situation is, it can be improved. While you can (and should) learn from the past, beating yourself up over mistakes you may have made in it won’t get you anywhere. Once you’re ready to begin getting out of debt, start by finding out where you are. (You can’t get to where you’re going if you don’t know where you’re starting from.)

Step Two Towards Getting Out of Debt

Start by recording every single thing you buy, no matter how small. (Even a 1 cent gumball counts.) This may seem extreme, but chances are you’ll be surprised at how much of your money is spent on the little things — and the only way to find out for sure is to track every single expense.

Step Three Towards Getting Out of Debt

After completing steps one and two toward getting out of debt, the third step is to set up a spending & savings plan. Since you should already know your current income and expenditures, this step involves listing them out in an orderly manner.

Step Four Towards Getting Out of Debt

Step four toward getting out of debt involves looking for ways to reduce spending (so that you can pay down debt with the savings). If you have completed steps one, two, and three, you’ll have an accurate picture of what you’ve really been spending your money on and will know what your fixed expenses are.

Step Five Towards Getting Out of Debt

Step five toward getting out of debt addresses ways to use ‘found’ money to pay down debt. If you have completed steps one, two, three, and four, you’ll have an accurate picture of what you’ve really been spending your money on, will know what your fixed expenses are, and will have found ways to reduce your spending.