What is and how a credit repair works?
They are also known as repairers of debt, the main function is to help people who are no longer able to pay one or more bank accounts or with certain financial institutions where it can interfere and this service naturally has a cost. I will tell you how a company of this type works with information based on the operation of solve your debt.
A savings plan tailored to the customer is made to start with their contributions to an account that is solely theirs. While you save, the negotiations run, and as soon as you have an amount that matches the accumulated savings, then the debt is settled.
They negotiate with each of the institutions (usually banks) to achieve a discount of up to 70% of the total of each of the debts. These discounts do not depend entirely on the repairer but on the lender (banks) so it can vary from one to the other.
This interests you:
The repairers are under the supervision of the Federal Consumer Protection Agency, since they are not financial institutions for the simple fact of not directly collecting resources (money) from the clients, all the money that is required during the program, in the specific case of solve your debt, do not go to accounts of the company, it goes straight to a bank account that is in the name of the same client.
Although there are many negative reviews about this type of companies, there have been many positive results, as in the case of solve your debt, where so far they have liquidated just over 90,000 accounts.
What debts are candidates for a credit repair?
Not all debts are negotiable, it is a very important point that must be touched. The ideal characteristics so that a debt can be negotiated (in case of resolves your debt):
Debt above $ 35,000.
With a month or more of delay.
The debt must come from a Banking Institution or collections houses that agree to negotiate.
Those that are not candidates: savings and credit cooperatives or real estate loan companies, popular savings banks.
Enter the repair or do it on your own?
It is true that there is a way that you can solve your situation and pay a debt, but realistically, when there are high amounts of debt, the results are not guaranteed.
Among thousands of stories that clients have told us, there are several that prove that when they tried to do it on their own they discovered that the lack of information and experience was what did not allow them to complete their goal.
The advantages of entering a credit repair company:
You receive personalized financial guidance.
They negotiate your debt getting the highest possible discount (this depends on the institution to which you are owed)
We support you with collection calls.
We help you clean up your bureau so that you can be a credit subject once again.
When you do it on your own.
It is easy to fall into confusion.
The lack of information or financial culture can affect the process.
The negotiation process must be well known.
Collection calls continue.
The credit bureau has certain conditions so that your rating stops appearing.
It is a question of criteria and decision ...
Making decisions depends on the point of view of each person, there are many criticisms about these companies, in which they preach that it is best to do it yourself, it can be the solution, but being sincere the stress of having a debt that can not be paid is something that can lead you to lose self-control, go to this type of companies helps you to have a balance between your obligation and your well-being.