Do You Believe What a Creditor Tells You?

Recently I was in a conversation with a man who was in debt. He called several companies to verify his balance and thought he had paid several of his bills, leaving him with no balance on his accounts but later found out that he still owes money on these accounts. When paying off debts send a letter along with your payment and ask the company to send you a letter indicating that your account has been paid in full. Once you receive the company's letter keep it for at least three years. This will help you when repairing your credit because your credit report may not reflect the most recent balance on your accounts. If you apply for a loan or credit the letter will provide proof to a creditor or lender that the account was paid. Also, if the company states that you still owe money on an account you can use the letter as proof that the account is paid. If you get into a dispute with a company about your account you can use the letter as proof of payment and write the credit reporting agency to get the information corrected on your credit report. Good luck!