Credit Repair: Improving your Credit Score with Debt Management

Posted by on May 14, 2012 in Uncategorized | 2 comments

Bad credit can restrict you in many major aspects of your life. If your financial health has been damaged by unmanageable debt, it’s important to get help with debt management immediately and begin implementing credit repair strategies. Financial health can be salvaged over time by learning to manage your debts and by adhering to a strict plan and budget. Over time, your financial future can be brought back on track.

Getting out of debt is one of the best things you can do for your financial health and future. You should begin by learning about your various debt relief options, which include the following:

  • Debt Settlement: This is a savings program for those who can’t afford to pay their credit card bills. An affordable debt management savings program is created, and the individual makes payments to a debt settlement savings account each month. This is also a great way to establish good budgeting habits, in the form of paying bills and saving money each month.
  • Credit Consolidation: This is also commonly referred to as debt management or consumer credit counseling. It involves clients getting lower interest rates and applying larger payment portions to the principle balance.
  • Bankruptcy: This option may seem at first glance to be a devastating last resort, but it can be the best–and only–option for certain situations. For those individuals who are looking to get out of debt but are unable to make monthly payments or who have large assets that need protecting, it’s recommended to discuss bankruptcy with a BBB accredited debt settlement company.

All these options can have vastly different effects on your financial health and can pose varying difficulties to a credit repair strategy. You can try and navigate your options on your own, but many people will find great benefit in getting help from a BBB accredited debt settlement company who can explain each of these options in full detail and make recommendations based on their individual financial needs.

Tags: credit repair, debt management

*** This is an open blog. The contents of which do not necessarily represent the opinions and the policies of our company. If you’d like to share a blog post with us you can email us about your debt experience and we’ll post the blog for you.

2 Responses to “Credit Repair: Improving your Credit Score with Debt Management”

  1. What has the credit reipar person done? You paid them $900 and got nothing? I think you need to sue them also!The reason you are not getting anywhere is because you don’t know the law, and don’t know how to play the game. If you follow my instructions this problem will either go away within 60 days, or you will have an awsome lawsuit (and $1000).It goes like this .keep a log of everyone you talk to or who you send letters to. Send all letters by certified mail/return receipt to prove that they were notified. 1) Send letters to the collection agencies disputing this debt. Give them the facts. If this debt is on your history and it’s not yours, tell them that. Send a copy of your drivers license to identify yourself (NEVER your social security card). They have 30 days to investigate this dispute.2) Send a letter to the creditor/collection agent who posted this to your account. Tell them you want this debt validated . See the sample letter I’ve listed below. That means they must send you copies of contracts, bills, receipts, and everything they used to show you have a legal obligation to pay this debt. 3) If they do not respond within 30 days, then send a copy of that letter, along with another dispute letter to the collection agency. Tell them they must remove this debt from your records due to improper/lack of validation .If they do respond, examine the paperwork they have. This is the evidence they will use in court if a lawsuit is filed. If it obviously does not prove this debt is yours, then procede with legal action.Note that if the credit reporting agencies are still posting this after you have sent your second dispute letter, they will also be included in your lawsuit.4) Trot down to the small claims court where you live, and file a $1000 claim against the creditor (and the reporting agencies) for violation of the Fair Credit Reporting Act. It is against the law to post unvalidated information to your credit history, and they can be held responsible for any damage this may have caused you (loss of a loan, higher interest payments, etc ).Read the links below for more info.Contact me with you email if I can be of more assistance.

  2. Lets start by clarifying thnigs Debt consolidation is when you take out a loan to pay off all your other debts, then you pay one loan off at a reduced amount.Debt SETTLEMENT is when you hire a company to contact your creditors and negotiate a reduced balance, lower interest or late fees. You then pay this company to act as a trustee and pay off your creditors. Debt SETTLEMENT kills your credit scores. But getting a consolidation loan does not! You will still have the same debt, but now it’s only to one person.Debt consolidation is a great way to fix your money problems but it has great dangers also. Over the past few years the banks have been enticing people to take out these loans. People get them and pay off their credit cards .then turn around and run up those cards all over again. Now they are in twice the amount of debt, and have no way out.The end up filing for bankruptcy. This is the main reason the bankruptcy filings have skyrocketed over the past 5 years. So if you plan to go this route, you MUST get a grip on your credit spending.

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