You come home after a hard day at work. Click the answering machine and you have five messages from debt collectors that want their money now. This is overwhelming, and many people have found themselves affected by the dwindling economy, and high unemployment rates.
You fear that the only solution is to file bankruptcy. There are other resources that are available to you, and bankruptcy should be the last option, after you have exhausted all other possibilities.
The reason that you want to avoid bankruptcy is that it is permanent, but it also affects the available credit allowed to you for seven to ten years. That is a long time.
There are Companies that offer Debt Repair alternatives. These Companies work with creditors every day to ensure that their clients are receiving the best possible financial solutions. There are many different Debt Consolidation Companies that can assist you with payment arrangements and settlements.
As word of warning, before you actually decide on a Company to help repair your debt, do a little research. Unfortunately, because of the large demand for Debt Consolidation Companies, There has been reported cases of fraudulent Companies. So, before you choose, check with the Better Business Bureau, just to ensure that you are choosing wisely. You don’t want to be a victim of a scam.
The process is very simple, and will most likely relieve unwanted financial stress. Whichever Company you choose, you should understand a little bit about the process and how it actually works. You are going to gather all of your known debt. You should have copies of your most recent credit activity. It is also a good idea to request a copy of your most recent credit reports from the three major credit Bureaus.
The Company of your choice is going to want all this information, so make sure that it is accurate and up-to-date. You will make one small payment a month to a debt consolidation company. You will no longer receive unwanted phone calls. From this moment on this company of your choice will do all the communicating with your creditors. They will work for you to get the best possible payment arrangement for creditors, and sometimes the interest is also deducted from your outstanding balance.
Choosing a debt consolidation company may not work or benefit everyone, but this option can relieve your financial burden, and repair damaged credit, without the negativity of filing bankruptcy. It is just one of many options that are available, and can help you repair damaged credit.