Saturday, September 20, 2014

Clear My Credit Strategies That Work

By Jody Leach


There are so many people who are barely holding on in terms of finances. Many have lost their balance and fallen into the dark, deep hole of debt that they are unable to get out of. Thankfully, reprieve is available through debt relief organizations that offer solutions to those facing a mountain of debt and who asking, what can I do to clear my credit?

The help is available from debt relief organizations. They help people facing money owed for medical expenses, credit card balances, personal and business loans and loans accrued from collection and repossession. There are debts they are not mandated to handle including utility bill debts, home purchase or renovation, government and student loans, auto loans and lawsuits. The first step to getting help is enrolling and filling out a form online so that debt analysis can be done. There are no charges for the consultation or analysis.

Debt counselors who handle cases double as debt arbitrators. They have experience in how to deal with creditors and collectors. The relationship they have makes them better positioned to negotiate as creditors are also seeking solutions to recovering their money. Also, arbitrators understand laws related to debt and debt collection well. They can work around them and protect debtors from exploitation from creditors and collectors.

Several organizations in the US offer this service. Many people facing debt they feel they can never repay opt to declare bankruptcy. They do this to keep creditors from seizing their assets. Chapter 7 of US laws on bankruptcy stipulate that unprotected can be sold by creditors.

On the other hand, Chapter 13 of the same laws makes a provision for debtors to come up with a payment plan. This reflects on credit reports which affects access to credit. When a person with this record wishes to borrow in future, they will do as at higher interest rates because they are seen as a high risk borrower.

Organizations offering debt relief do so through different debt settlement options. Apart from renegotiating the terms of a loan so a debtor may in the end paying only part of it, the organization also helps debtors come up with a savings plan. This is important to for one to have a nest egg and avoid falling into debt again. Aside from to lowering the sum payable and putting a stop to calls and visitors from creditors, some of them threatening, these services also help one to avoid tainting their credit report with a record of bankruptcy which remains of the report for up to 10 years.

Debt consolidation is another option that debtors are offered. With this arrangement, the amounts owed are combined and then paid with funds from a debt consolidation loan. When all the debts are cleared, a debtor remains with only the consolidation loan to pay off.

Debt may also be consolidated and the organization ensures that every creditor is paid every month through a standing order at a bank. This ensures that payments are always made on time until they are cleared. Apart from having to make payments for the consolidation loan only, interest rates are reduced and late payment charges are eliminated.




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