Here’s what happens when there’s no place to go but up. Damaged credit takes time to heal. Late payments, missed payments, repossessions: Nearly, every black mark will stay on your your credit history for seven years. After seven years, the law requires that most negatives, including repossessions, have to be removed. The good news is, though, is that the older the injury, the less it hurts. So as things like late payments and repossessions age, they affect your credit less. How much will a repossession affect your credit score? It depends where your credit score is at the time. if your score is high, the effect of a repossession would be greater. If your score is low, the effect would be less.
SOLUTION: Call your creditors, when your payments will be late or you have trouble paying the full amount. NEVER ignore the problem. It will only get worse. REFINANCE a high interest car loan to make the payments smaller, you can sell the car and get a less expensive one you can afford. REMEMBER: There are things you can do before your car is repossessed. CALL: A free credit counseling service to get free advice if you are in debt or have trouble paying your bills. There are lots of options for consumers to remedy debt problems. USE them! You will be glad you did!
Rev. Dr. Donna Taylor is the Pastor of Andrew Chapel, United Methodist Church on the Northern Neck in Montross, VA. Rev. Dr. Taylor promotes best practices for financial literacy and financial empowerment in the church and leads workshops throughout Northern Virginia. Currently, she serves as the Chair of the District Finance Committee. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, VA. Rev. Dr. Donna Taylor is married to Dr. David Taylor, who is also the Director of our church-based free clinic. They have two adult children and three grandchildren. In her leisure time, Rev. Dr. Taylor enjoys traveling, jogging, weightlifting, swimming, yoga, and interior decorating. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, Virginia. Rev. Dr. Taylor was born and raised in New York City and recently discovered her ancestral roots in Guinea-Bissau, West Africa. Rev. Dr. Donna Taylor is married to David Taylor and they have a son and a daughter. Their daughter is a educator and son is an Active-Duty Senior Seaman in the Navy married with three children. In her leisure time, she enjoys traveling, reading, swimming, writing poetry, crocheting and spending time with her family.