Apparently, there’s this one debt that’s over 120 days old that I didn’t even know about. I think it might be from a dispute with a doctor a while back that I thought was settled. Since then, I’ve moved a few times and might have missed some mail from the collections.
How can I fix this? How do I figure out what this debt is and pay it off? And will my credit score bounce back once I settle it?
The last time I checked, my score was great and I handle all my debts and credit cards responsibly. I’m lost on where to start fixing this mess!
Farewell,
Worried Borrower
Response from THE MONEY MINDER:
Hello There,
I’m sorry to hear about the unexpected drop in your credit score and the confusion surrounding the outstanding debt. It’s definitely a frustrating situation but rest assured, there are practical steps you can take to address this issue.
To start, you can request a copy of your credit report from all three major credit bureaus (Equifax, Experian, TransUnion) to get a better understanding of the outstanding debt and gather information about it. This will help you identify who the creditor is, the amount owed, and any other pertinent details. Once you have this information, you can reach out to the creditor and try to work out a payment plan or negotiate a settlement if needed.
If you suspect the debt might be related to a past billing dispute with a medical provider, it could be worth contacting them directly to inquire about any outstanding balances or debts in your name. They may be able to provide more clarity on the situation and help you resolve it.
Paying off the outstanding debt will certainly have a positive impact on your credit score. Once the debt is resolved, make sure to request a letter of confirmation from the creditor to update your credit report and reflect the payment, which should help improve your credit score over time.
It’s great to hear that you have been financially responsible by paying off credit cards on time and maintaining good credit lines. Stay proactive in addressing this issue and continue managing your finances responsibly. If you’re feeling overwhelmed or unsure of where to start, you may want to consider reaching out to a credit counselor for guidance and support.
I hope this information helps you navigate the process of resolving the outstanding debt and restoring your credit score. If you have any more questions or need further assistance, feel free to reach out. Best of luck in getting this issue sorted out!
Farewell from THE MONEY MINDER
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