In order to make sure that you do not overpay, know that you can dispute your really high interest rates. It is important to know the terms of your original agreement for the debt you incurred. Usually if you agreed to the terms the terms will be upheld as legal. If you believe the charges are excessive and your debtor will not negotiate down the interest and other additional charges, state laws might provide you with additional avenues to pursue a reduction in these charges. Federal law provides that when you are billed by a collection company the fees and interest cannot exceed the amount of the original debt. However, the contract you signed ensured that you agreed to pay off your interest. It is possible that you can sue a creditor and claim that the interest rate charged is unreasonably high.
Put together a plan to pay off the collection account and past due accounts. When these accounts get paid off, they are still on your credit history, but they are then marked as paid, which is far less damaging to your score.
Look at your credit report to make sure that there are no errors. Mistakes do occur, and it’s possible issues will arise from errors in your file. If you file a credit dispute you can prove that it is incorrect.
If you are able to negotiate a repayment plan with your creditor, be sure to get it in writing. You need to have a contract in writing so if the creditor goes belly up or they change your terms, you can catch them on it. After you have paid the debt off completely, keep your receipt in case there are any discrepancies on your credit report.
If you have bad credit it can make your life more difficult. Following these tips to improve your credit score will help you take charge and have a more positive attitude.