subject: Popular Debt Relief Options – Debt Settlement Vs. Credit Counseling [print this page] This may seem like basic common sense 101 but the first thing you should make sure that your credit report is correct. Checking your credit report for inaccurate information is essential. Your credit score depends on it and this will stop the debtaches.
If you or someone you know is in financial hot water, consider these options: realistic budgeting, credit counseling from a reputable organization, debt consolidation, or bankruptcy. How do you know which will work best for you? It depends on your level of debt, your level of discipline, and your prospects for the future.
Consumer reporting companies can report most accurate negative information for seven years and bankruptcy information for 10 years. Also information about unpaid judgment against you can be reported for up to seven years or until the statute of limitations runs out, whichever is longer. There is no time limit on reporting information.
Your credit file may not reflect all your credit accounts. Most national department store and all-purpose bank credit card accounts are included in your file, but not all. Some travel, entertainment, gasoline card companies, local retailers, and credit unions are among those that usually aren't included in your report.
Debt Settlement is a viable option to help you negotiate your unsecured debt. Unfortunately some companies take advantage of people who need debt reduction assistance. If you choose the wrong company, you may find yourself in worse shape than you were before.
A debt settlement company should charge fees based on performance and results. Beware of companies charging a flat fee based on a percentage of your debtaches. These companies collect their fees which usually are up front before your debt is settled. This is despite of how successful they are at settling your debtaches.
Reputable credit counseling organizations can advise you on managing your money and debts. They will help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. A good counselor will discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.
Popular Debt Relief Options Debt Settlement Vs. Credit Counseling
