Credit Repair, Debt Consolidation, and Credit Repair: Should You Pay Someone to Do It for You?
There are plenty of ways to improve your creditworthiness. The one that pops up at the top of the organic search results, namely reducing your expenses, increasing your income, and putting more of it toward debt repayment, is easier said than done for most people. Prices are high, and wages are stagnant, so even if you spend all your waking hours on work and gigs, prepare all of your meals at home, and do not engage in any leisure activities, you only have so much money each pay period to put toward debt repayment, so your debt burden remains consistent from one month to the next, or it may even increase. There are other ways of making debts go away, or at least making them stop showing up on your credit report. None of them are guaranteed to be easy or effective; if they were, no one would pay off their debts the old-fashioned way. To find the best way to reduce your debts and increase your borrowing capacity, contact a Philadelphia debt relief lawyer.
Credit Repair Doesn’t Pay Off Any Debt
Some companies offer credit repair services, by which they promise to raise your credit score quickly. They do this by reviewing your credit report and checking for errors. Items on your credit report are only supposed to be visible for a limited amount of time (for example, a chapter 7 bankruptcy filing remains visible for ten years), but then the credit reporting bureaus must remove them. You can review your credit report and notify the credit reporting bureaus of errors, or you can pay a credit repair company to do it for you. Either way, it will not work miracles.
Debt Settlement Means Negotiating for Partial Debt Forgiveness
Debt settlement is when the borrower agrees to pay part of the outstanding debt and the creditor agrees to forgive the rest. Bankruptcy filings involve negotiating a settlement of eligible debts, but it is also possible to negotiate with creditors outside of court to settle your debts for less than you originally owed. If the debt amounts are large, you should hire a lawyer. If they are garden variety consumer debts, you can probably negotiate a settlement on your own. There are debt settlement companies that you can pay to negotiate with creditors on your behalf, but it is nothing you cannot do on your own.
Debt Consolidation Means You Still Have to Make Payments Over a Long Period of Time
Debt consolidation is not a quick fix, but it can lead you to spend less money on debt repayment than you would otherwise have spent. To consolidate your debts, you take out a personal loan with a low interest rate and use it to pay off your high-interest debt. Then you are responsible for paying off the personal loan.
Contact Louis S. Schwartz About Increasing Your Creditworthiness
A Philadelphia consumer law attorney can help you get debt relief so that you can qualify for affordable loans. Contact Louis S. Schwartz at CONSUMERLAWPA.com to set up a free, confidential consultation.