March 24, 2021 at 5:07 pm #74769
Just looking for some insight on how to upload my utility bills into my web file? For example I have comcast for internet. Does it go under debts and then I select “other” as the debt type? It also asks for the balance. The bill is paid on the 10th of each month, by autopay. Since it was paid already, should I put the balance as zero? Or show the balance as $110 which is what it is every month?
Also, how do I upload my other debts? such as those listed on my credit report? like medical bills older than two years?
And finally, where do I get my naca email? My first counseling appointment is on 4/7/21March 24, 2021 at 5:57 pm #74772TTrumbleMember
Monthly obligations such as utility bills are not considered debts. They are recurring household expenses and do not belong in the DEBTS section of your file. In fact, unless you are using your utilities as a form of alternative credit or have been asked to submit them to verify your current place of residence, submitting utility bills is not required.
Online Operations, NACAMarch 25, 2021 at 9:39 am #74776
Thanks so much for your response. I guess I’m confused, would you mind clarifying what debts should go into the debt section of the web file? For example there’s a type listed for Automobile. My car is financed, so in the balance field do I enter the amount remaining on the loan or the amount I pay every month?March 25, 2021 at 10:04 am #74777NelsontMember
Anything that gives you a service is not a debt. Utilities are a service. Netflix is a service.
Anything that gives you money is a debt. Loans are debt. Like your car loan. Student loans.
Credit cards give you money so they are a debt. They are digital revolving loans you pay back every month. They are revolving loans because you always have that credit limit available. Car loans are not revolving because you are only given the money once. When it’s paid off that’s it.
Debit cards are not credit cards. They are just digital cash you already have.
The balance on your loan is the amount remaining. Not your monthly payment. If your balance has 10 monthly payments or less remaining then that debt may not be considered. Otherwise your monthly payment will be considered part of your monthly debt.March 25, 2021 at 10:55 am #74781
Thank you for the clarification @Nelsont. So does this mean the only place I’m listing monthly bills is on the budget sheet? And do I list the debts on my credit report here too? I have a few medical collections that are past the 24 month mark, but are not closed/charged off yet
Also, I attempted to delete the utility bills I put into the web file under debts, but I keep getting an error message. I don’t have my first intake session until 4/7, so I guess my counselor will delete it then?March 25, 2021 at 3:29 pm #74787NelsontMember
Yes list your monthly bills on the budget form. Have them handy at your appointment just in case. It’s always better to be over prepared. You might not need any of it but, it’s better than the alternative of being delayed because you didn’t have it. Anything you have trouble with your counselor should be able to help out with assuming you have it ready to go.
Don’t list anything on your credit report unless you are actively paying it.
Now with your credit report there a couple of things. First you will be asked to write letters of explanation. You will need to explain why you missed payments, why you never tried to reconcile (it wouldn’t be in collections or charged off if you did) and what steps you are taking to ensure this will never happen again.
Second, this is what trips people up, the 24 month rule is not well understood. It’s 24 months from the date of last activity. NOT 24 months since collection appeared.
Charge offs need to be 24 months from the charge off date of charge off. A charge off indicates the collection agency is no longer collecting and therefore you are off the hook however you still need to show 2 years of good financial habits from that point forward.
Collections are not allowed. The reason is because when in collections and not charged off you are still legally responsible for a debt you are not paying which means you are not practicing good financial habits. If you have accounts in collections that are not charged off you will need to enter a payment plan to pay them off completely. Now this might not be so bad. Collection agencies purchase the debt for pennies on the dollar and you can settle for nickels on the dollar. So that $1000 hospital bill they are trying to collect you might be able to settle for $300 for example. In any event you need the pay off letter from the collection agency stating you account is paid in full.
Now there are some unusual circumstances that don’t exactly follow these rules. It is possible a collection agency never closes or charges off a debt but also stops actively collecting. This happened with my vehicle repossession 5 years prior to joining naca but, it stays on the credit report for 7 to 10 years. There are also circumstances of predatory behavior which can be reviewed on a case by case basis.
March 27, 2021 at 6:48 am #74799
- This reply was modified 5 months, 4 weeks ago by Nelsont.
Thanks so much for your detailed response @nelsont!
I’m so disappointed that this isn’t stated clearly in the qualification workbook, as I have read the Debts section many times over. It literally says that any “Charge-offs and collections that occurred within the past 24 months need to be paid off or in an approved payment plan.” As you stated, I was under the assumption that for example, the medical bills that were reported for collection back in 2018, would only require LOEs, which I have already written. My first intake appointment is on 4/7, so I will speak with my counselor about reviewing this particular debt as I did try to resolve it at the time. I was denied an official payment plan by the hospital because the amount I could afford to pay per month was too low in relation to the amount of the debt, which is a little over $5k. They really told me that the $50 I wanted to pay monthly was too low and that I would need to pay a minimum of $125 at least. I couldn’t believe it smh. In retrospect I suppose I could’ve just mailed in whatever I could, but we had a house fire months before, a job loss and then my health issues, it just all got tangled up. So here we are.
Also in regards to credit reports, I have to disagree with the “never having tried reconciling” comment. Other than that medical debt, I have 2 other collections, one from Capital One and one from Progressive Insurance. The problem here is that I have disputed them over and over to no avail! The comment they put on my report says, customer disagrees/disputes, meets FCRA requirements. I have no idea what that means. I have a current credit card with Capital One ALSO listed on my credit report which is and always has been in good standing! So not sure how they can both be listed and still not believe something most likely fraudulent has happened! Similar sitch with Progressive, I have current policies with them also never late, so again the account listed on my report has to be fraudulent. I keep disputing these two accounts but with the same end result. Do you have any advice for this?
Again thanks so much!
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