Credit Help - The Negatives
by Kevin Sanders
We would love to be able to say that it doesn't happen. We would love to say that all credit counseling agencies and debt management providers are 100% dedicated to you, their clients. In fact, it would be a lot easier for us at Bankruptcy Relief Network if this was true. But the fact is, you should always be aware when seeking outside help. Do not fear seeking outside help, but definitely stay aware of the possibilities.
Beware Of False Promises
Many of our clients come to us after a bad experience with one of these agencies, and although we are always willing to help, the damage done by these unscrupulous agencies could have been avoided.
Another thing to be careful of is when counselors or other agencies ask for large sums of money up-front. It is generally not necessary for you to post a large sum of money in order to have an agency accept your case, unless you have a very extreme case. Try contacting another agency (or, indeed, Bankruptcy Relief Network), to ensure that there are other options. When it comes to your personal debt situation, it is always better to be safe than sorry.
Credit Repair Facts
We at BRN give a severe warning about these services! The truth here is that accurate credit information simply cannot be changed. While many try, credit history is inevitably impossible to hide.
However, it is possible to have information deleted from your credit report if it is outdated or incorrect. Your local credit bureau can help you with this.
Refinancing - Always Keep The Risk Low
If, for example, you are finding yourself in considerable financial trouble, and do not have the income resources to manage your current debt, we always discourage attempting to obtain such a loan.
The reason behind this is that if you are having trouble with, say, credit card debt, which is unsecured, a debt consolidation loan or second mortgage does not actually decrease that debt, and in fact secures that debt to your home. What this does is greatly increase the risk that you may lose your home if you miss numerous payments.
If, however, you have determined that a debt consolidation loan is probably your best option, beware of refinancing that is at a high interest, or requires a large upfront fee. As with everything, debt consolidation loans are buyer-beware.
(Kevin Sanders is a BRN counselor with over 10 years experience in the credit industry.)
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