Getting Out Of Bad Credit Debt
Are you in bad credit debt? If you are, are you prompted by the same instinct that makes you bring out your DIY tools the moment your plumbing gives up? If you answer yes, that's good for you. What most people do not realize is that it makes more sense to fix your own financial mess rather than mess around with your own plumbing or electrical fixture. Bad credit debt is most often the result of one's own poor choices and bad judgment and as such, can only be fixed by you and no one else. If you are in bad credit debt, resist the urge to seek outside help. In the age of plastic, people are bombarded in the media (TV, the Internet, the radio, flyers in your mail and grocery cart and even cold calls) with the promise that they can totally make your bad credit debt disappear; cleanse your records of still noted bankruptcies, bad loans; or even get you new and "legal" credit identity. If you read the fine print of the law or even ask a lawyer outright, the answer is a flat out no. This is a scam plain and simple. The modus operandi is this; dubious companies appeal to consumers such as you who not only have poor credit histories but really bad credit debt as well. For a certain fee, they say they can clean your credit report, even remove notations of previously filed bankruptcies so that you can get that new loan for a brand new SUV, an insurance, a new job and even a home mortgage. The truth is that alterations to your credit report without due process (like proving that certain items are incorrect or outright errors) is a federal offense.
The only way out of your bad credit debt situation is through your own initiative- and you wouldn't have to bring out the power tools either. Having bad credit debt should be a situation where you have to take positive control of your finances. It should be the time when you acknowledge mistakes, find the strategies to correct these mistakes and find the courage as well as help in moving on past these mistakes and never repeating them again. The first thing to do is assessing your credit card history; know where you stand financially. If you are confused on what to do, get a friend who knows about balancing and budgets to see if you can work out something on your own in terms of repaying your debts. Do not think of filing for Chapter 7 as a solution; this should be your last resort as a poor means of wiping out bad credit debt. A bankruptcy might worsen your credit standing because it stays on your credit history for at least 10 years and will be considered when your apply for new credit or loans. Knowing your real financial standing offers you the hope that bankruptcy is not the solution; that there are other options you might consider like credit counseling and debt consolidation which will put into place the repayment schemes for your debts that you might have trouble doing on your own. |