Credit Repair Services
Under the Credit Repair Organizations Act, the public is protected from credit repair companies that offer miracles for large sums. Although many credit counseling organizations are nonprofit, watch out for companies that have hidden fees or press for voluntary contributions. Anything that seems too good to be true probably is. However, there are legitimate credit repair services that can truly help you out in case you are in over your head with the management of your credit. These counseling organizations often work locally, through the Internet or over the telephone. Look for companies that offer in-person counseling. Many universities, military bases, housing authorities and credit unions offer credit counseling programs to the public. Before becoming overwhelmed, consider your local consumer protection agency, friends and family for good referrals that can get you back on track.
For those considering filing bankruptcy, as of October 17, 2005 the law requires that credit counseling from a government-approved organization take place six months before filing. This measure can help save you from a ten year long smear in your credit report and help you manage your money and debts, develop a budget and educate you in developing a personalized plan that can prevent future financial problems. Workshops can help you employ what you learn with provided educational materials. Counseling is one on one and can be essential for your future financial well-being. Sessions last about an hour and usually involve the offer of follow-up sessions.
» Avoid
Credit Repair Scams