When unsecured debt begins to increase exponentially from accumulation of late fees and spiking interest rates, the assistance of a professional credit repair specialist can guide a person out of the murky waters of bad debt.
There are multiple debt management companies to choose from, but for comparable pricing a person can seek the services of a professional law firm specializing in credit report repair, which goes hand-in-hand with reducing debt and collection efforts. These firms specialize in assessing reports from all three reporting agencies. They work to correct or eliminate errors or have discharged debts removed, effectively raising your credit score.
Before this can be done, outstanding debts must be paid or brought current to avoid further negative reporting. During the repair process, payments to creditors must continue to be made on time to avoid additional negative marks on the credit report. For existing negative marks, items brought to the attention of Equifax or another agency for removal should disappear within thirty days; if not, it is the job of the specialist to make sure the agency follows through.
Working with attorneys who are credit repair specialists is advantageous when legal disputes regarding debts arise. A reputable firm will operate with full knowledge of their clients’ rights under the Fair Credit Reporting Act, as well as the Credit Repair Organizations Act. Knowledge of these laws and the nuances surrounding them may go deeper with a specialty law firm than it would with an organization using credit counselors to assist their clients.
Attorneys understand the legal action necessary if clients are not being treated fairly under these laws, or if creditors are not moving quickly enough. To repair credit, specialist attorneys must act quickly for a variety of reasons; the most common reason being when a client is getting ready to purchase a home or business, and wants to negotiate favorable terms. Poor credit scores mean higher interest rates on loans, costing the individual a significant amount. Plus, the sooner they act, the more time the score has to improve.
Repairing credit is not an overnight process, but it does not have to take years either. Depending on the individual’s situation, improvements can begin within thirty days of a negative mark being removed from a report. Certain items, if they are legitimate, cannot be removed so quickly though. For example collection accounts will stay with a person for seven years.
Even if the credit repair specialist does their job well, rebuilding damaged credit means paying bills on time, whether they are for utilities or credit cards. Another factor affecting a score is a large amount of outstanding debt, so it is good practice to maintain low balances on cards. Regardless of how fast reports are cleaned up, a professional is liable to see items the inexperienced eye would miss.
Hire a repair specialist for help dealing with multiple collections efforts, excessive and questionable efforts to collect, or assistance in removing stubborn errors from a report. The professional help costs you, but may save you thousands in the long run.
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