If you’ve made a few mistakes when it comes to using credit cards, you are not alone. The majority of Americans live paycheck-to-paycheck and have stumbled a time or two when it comes to their Visa, MasterCard or American Express card. So how can you get back on track?
At Credit Repair by Attorney, we help ordinary people repair their credit. So, if you’re serious about making a change but don’t think you have enough discipline to create and stick to a realistic budget but haven’t been able to work out a repayment plan with your creditors, you may consider contacting a non-profit credit counseling organization. Many such organizations work with consumers to solve their financial problems.
Reputable credit counseling organizations can advise about managing money and debts, help developing budgets, 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. And counselors help customers develop a personalized plan to solve money problems.
However, please be advised that, just because an organization says it is “nonprofit,” doesn’t guarantee that its services are free, affordable, or even legitimate. In fact, many credit counseling organizations actually cause more problems for their clients than they solve.
If you are dead-set on using such an organization, before you sign on the dotted line, you should be aware of potential drawbacks to working with a credit counseling service:
- Not all organizations are legitimate. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals to a legitimate firm.
- Many credit counselors charge exorbitant fees, which can be hidden. Even if fees are not set, some companies urge consumers to make “voluntary” contributions that can actually increase instead of reduce your debt.
- Most credit counseling firms recommend clients begin Debt Management Plans. If your financial problems stem from high debt or inability to repay debts, a credit counseling agency may recommend enrollment in a Debt Management Plan (DMP). The problem with a debt management plan is that you are required to pay your entire debt in one large monthly lump sum. Even if the credit counseling agency is able to arrange a discount on interest, you may find yourself with a DMP payment of several hundred dollars per month. Also, all credit counseling agencies charge a fee for managing client DMPs. Even non-profit organizations charge this type of fee.
- DMPs are costly and time consuming. A successful DMP requires you to make regular, timely payments, and could take 48 months or more to complete. Most credit counselors should be able to estimate how long it will take you to complete the plan. And during this period of time you may have to agree not to use or apply for any credit the entire time you are participating in the plan.
- Many credit card companies count debt management plans against clients. So, even if your intentions to repay your debt are honorable, participation in a debt repayment program might actually negatively impact your ability to secure credit in the future.
If you have made some mistakes on your way to building great credit, fear not. Even if your credit score is low, you have the power to change the paradigm. Consider proactive credit repair services. The truth is, if you follow proper procedures, proactive credit repair services can help you reach your credit goals despite some missteps. Inaccurate information and untimely information must be removed. And, admittedly, in many cases, this is a frustrating and difficult process. But we can help. At Credit Repair by Attorney, we take control of the disputing process for you and make the process fast, effective and convenient for you.
Credit Repair by Attorney specializes in helping consumers fix their credit scores. We are a premier credit repair service—we know how to fix credit reports. We understand the necessary steps and procedures to get the job done quickly and correctly, having helped tens of thousands of consumers repair credit reports. Improve your credit today and qualify for the credit you deserve. Located in Rancho Cucamonga, California, Credit Repair by Attorney serves clients in Los Angeles, Orange, Riverside, San Bernardino and San Diego Counties as well as Arizona and Nevada. Our team of highly qualified and experienced attorneys is ready to provide fast and effective solutions for your bad credit. For a free consultation of your credit situation, call us today @ 909-944-3222.