My Financial Tips

Over one million Americans filed for bankruptcy in 2008. The average American with a credit file is indebted for more than $16,000, excluding their mortgage. As the amount of personal debt rises, so does the incidences of credit scams and scammers, eager to prey on those with troubled credit scores. Per the Better Business Bureau, complaints against credit repair companies rose 38% in 2004 and have been on a steady increase since then. Overblown claims of producing clean credit histories from dismal credit reports are tempting to those bogged down in defaults, late payments, foreclosures and bankruptcies on their records. But, in reality, these credit repair and credit counseling agencies do zilch for the debtor except take money they cannot afford and sometimes vanish into the night leaving no trace. Bankruptcy Lawyers From Erie do not advise these services.
Credit Repair companies can do nothing for you that you cannot do for yourself. No matter the claims, credit bureaus will not remove negative items from your credit report without good reason: (1) the item has been from long ago and drops off your report; or, (2) you argue against the item in writing to the credit bureau, providing evidence in your behalf. Period. Here are some words of warning to watch out for in claims made by credit repair companies:
• They want money up front. A lot of it. Never, never pay up front.
• New Social Security Number. Some companies promise their customers new, clean Social Security Number. Don’t believe it. It is virtually impossible to get a new Social Security Number and illegal to have more than one.
• Create an Employer ID. Some of these companies utilizing their Social Security number to produce a “new” credit record. Don’t do this either. Avoiding the issue in this manner will only deepen your trouble.
• Consumer rights. Any reputable company should provide you with a copy of your consumer rights and actions you can take for yourself.
• Dispute all information. Some companies advise their clients to dispute all the information on their credit report. This is fraud and you may be subject to persecution.
• The company recommends you not contact a credit bureau. This is absolutely your right, the correct way to clean up your credit, and the recommendation of Erie Bankruptcy Lawyers.
The National Foundation for Credit Counseling has a web page or can be reached by phone. Their web page offers valuable information on credit counseling and advice for exhausted debtors. Through their resources, you can find a reputable credit counselor near you to answer further questions. Furthermore, Erie bankruptcy lawyers can offer further guidance on finding reputable credit counselors.