In general, I would not say that there aren’t companies of this kind out there that aren’t helpful or useful in certain situations, but I don’t think you want to be using credit repair agencies or debt consolidation companies. Number one, they’re doing something really that you can do yourself. They are sort of charging you and a lot of times, it’s sort of a snake-oil kind of a situation where they’re not doing anything that you can’t do yourself or they’re really not doing much of anything at all. That’s kind of the best case scenario.
The worst case scenario, they could be jacking up your interest rates or consulting credit cards and end up charging you more interest, or you can really get stuck in a situation where you end up paying more than you were before and not realizing it. It’s really better to handle those kinds of things yourself.
If you’re having trouble with one particular debt, call them up and talk to them and see what a credit card company will do for you. They may be willing to lower an interest rate, they may be willing to not take a payment for a month or two, or put something in forbearance. It’s really better to handle that stuff on your own.
If you’re at the point where you have a lot of debts, then that’s where the alarm bell should be going off and you should probably be considering doing something more drastic like bankruptcy and instead of flying blind and trusting a company that says they can repair your credit score, and go talk to a professional. Most of the time, you can get a free consultation and just held on your situation and that’s somebody that it’s somebody that does handle those things and you can trust and I would go with that rather than talking to any debt consolidation or any credit repair companies.
Are People Hesitant to File a Second Bankruptcy?
No. People that have filed bankruptcy in the past are probably more likely to go ahead and do it at the second time if they’re eligible. Now, it might have a little bit of survivorship; if they are talking to me and I am filing bankruptcy for them the second time, then that’s somebody that obviously doesn’t have a problem with it, whereas I wouldn’t hear from them if they did. When somebody files bankruptcy they find out that it’s really a lot easier than they thought and it can help you out a lot more than they realized, and maybe they get over some of those stigmas and things like that that hold people back from filing bankruptcy.
You hear about a lot of celebrities and a lot of companies that have used bankruptcy multiple times and those kinds of people and especially businesses tend to look at bankruptcy as a business decision rather than as some sort of personal declaration of failure.
I think that a lot of people would be served well to look at their own financial situation just as if they were a business themselves. If they are in a situation where filing bankruptcy can help them, whether they’ve never filed it before or whether they filed it two or three times, if you’re in a place where that’s going to help you, then do it. Help yourself and get yourself back on track.
What Are Credit Repair Attorneys? What Do They Do?
I know that there are people out there who, if you have an issue with your credit report, they will help you to clear it up. It is something that you might use and this is one of those things where if you are having a single problem, one contained problem with one creditor giving you a negative report or you defaulting on that credit or that debt for some reason, then you might talk to somebody like that for sure.
If you have massive problems, that’s when bankruptcy is going to be necessary. When I say massive, I mean you’ve got multiple debts that you’re not being able to keep up with and you’re having trouble on a monthly basis. If you are in that kind of a situation, a creditor repair attorney is not going to be able to help you even if they can clear something off of your credit, you are going to have other debts until you are not able to make the payment again and then you’ll discover it back on your report.
It could be useful in some situations but it’s not really something that goes well together with bankruptcy because if you’re in a situation where you need to file bankruptcy, then that’s what you need to do rather than considering the credit repair.
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