Just because a person faces financial hardship doesn’t mean that he or she should automatically look to personal bankruptcy as the solution.
Sometimes, the wise choice is to stay away from bankruptcy court all together.
The following options should be considered when debt or credit issues are a significant life burden:
Debt Management by DebtGoal
Not everyone’s debt is so staggering that it can’t be overcome. If that’s your situation, what options should you consider to help you manage your debt and payments?
DebtGoal is designed for borrowers who have the financial means to pay off debt but need help creating and sticking to a plan that will get them out of debt most effectively. Unlike debt settlement or credit counseling, DebtGoal puts control in the hands of borrowers, letting them manage their debts and payment plans.
DebtGoal is dramatically less expensive than alternative solutions and IMPROVES rather than destroys the borrower’s credit. DebtGoal is a unique do it yourself debt reduction program that launched in December 2008 and has since enrolled over 20,000 users paying down over $1 Billion of debt.
DebtGoal is great for people who wish to reduce debt, is simple and easy to use, and automatically connects to the users bank account. DebtGoal has been profiled in notable publications such as Bankrate, Newsweek, US News, WalletPop, SF Chronicle, New York Times and many more.
CREDIT REPAIR by Lexington Law: Delete Bad Credit Information
So how is Credit Repair done? The Fair Credit Reporting Act (FCRA) allows a consumer to challenge the information on his credit report on the basis of “completeness and accuracy.” When a consumer files a dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete. In some circumstances, the credit bureau is required to go beyond a simple verification of the creditor’s own computer record. If, within 30 days, the credit bureau has not received verification from the creditor, then the credit bureau must promptly delete the credit listing.
So why isn’t Credit Repair pursued more frequently? Because of statements by bureaucrats and credit bureau executives in the media, many people still believe that repairing problems on an individual’s credit report is an impossible task. But the fact remains: negative credit listings are deleted from peoples’ credit reports by the thousands each and every day — especially when someone who knows what they are doing tackles the problem.
A few years ago, an attorney from Lexington Law visited with a regulatory agency for a casual conversation with two agents. The agency’s office, as a matter of course, wholeheartedly believed the credit bureaus’ claims that bad credit information couldn’t be deleted.
The visiting Lexington attorney asked, “How many negative listings would you have to see deleted from consumer credit reports before you would believe that bad credit can be deleted? Ten? Fifty? A hundred? One thousand?”
The agents responded with only blank stares.
“How about 50,000 deleted listings? Would that convince you?” continued the Lexington attorney. From his briefcase he pulled a stack of papers six inches high.
“In these pages, we have documented the permanent deletion of over 50,000 credit report listings from our clients’ files — and that’s just in the last two years alone,” he explained.
The agents pulled the stack across the conference table and began to pick through the pages, taking in the massive list.
“But have you deleted any bankruptcies?” shot back one of the agents. “We know that bankruptcies can’t be deleted.”
The Lexington attorney leaned across the table and ran his finger down the first page. “There’s one deleted bankruptcy… and, there’s another,… and another,… and another. Should I go on?” asked the Lexington attorney.
The agents sat back in their chairs.
“You know,” began one agent, “I have this one listing on my credit report that simply must belong to somebody else…”
LEARN MORE ABOUT HOW YOU CAN REPAIR YOUR CREDIT HERE.
DEBT COUNSELING ADVICE from Debt Help 101
Some people with significant debt who still wish to stay away from personal bankruptcy may be best served by hiring a professional debt negotiator to work with each major creditor to settle a portion of your debt. In essence, these debt counselors contact your creditors, tell them that you have no ability to repay your debt in full, and then work with the creditor to determine a much lower amount that you can pay, reducing both the monthly payment amount and the total debt due.
But be advised: in taking this extreme action, a person’s credit score is usually impacted significantly. However, if you are in a situation in which you owe tens of thousands of dollars and cannot repay the majority of that debt, your credit score typically has been affected negatively already and may not be your most pressing problem.
Debt Help 101 matches persons with significant debt with service providers who can provide strategies and/or negotiate for debt reductions. Upon sign up, you will be contacted to discuss your situation, and then options will be provided to you based on your circumstances. There is no charge for the initial consultation.
