The original creditor (e.g., your credit card company) is the entity you originally borrowed from. A debt collector is a separate company that now either owns the debt or is hired to collect it. They are often more aggressive in their tactics.
Even while repaying debt, contribute a small, fixed amount to savings automatically each month. Treat it as a non-negotiable bill. This "snowball" approach for savings builds the habit and provides growing protection.
Track all your income and expenses for one month without judgment. This provides an honest snapshot of your spending habits and reveals areas where money is leaking out unnecessarily.
No. This is a critical mistake. Taking on new debt you do not need and cannot afford will worsen your overextension. The potential minor boost from improving your mix is vastly outweighed by the risks of a new hard inquiry, a new monthly payment, and increasing your overall debt burden.
File a dispute directly with the credit bureau online or by mail. Provide evidence, and they must investigate within 30 days. Also notify the lender reporting the error.
