Sometimes they get a bad rap but there are some great companies out there that are really trying to help you get out of debt and not take advantage of you.
These days, with the economy so unpredictable and so many people suffering in their finances, obtaining and effectively managing our credit can seem difficult, and to some of us, impossible. There are so many responsibilities pulling us in every direction-our children, careers, managing our households, budgeting our financing-it can all become overwhelming. CMI reports indicate favorable and unfavorable qualities as ascertained by credit and collection professionals who decide who should and should not receive credit and why. For those who have obtained the misfortune of getting in over their head with deep debt and a bad credit rating, getting back on track can seem like an unattainable feat. However, there are options available such as seeking the help of credit management companies and debt counseling to assist in managing your credit and getting you well on your way to a more favorable credit score.
Struggling To Stay Afloat
Years ago, I was struggling to make ends meet on a dead end job. I was a college graduate, but with little or no experience in the fields which I had degrees in, employers were not giving me the time of day. Out of nowhere it seems, I got flooded with credit card applications. At this point, I had positive ratings on my credit score, so as they were sent to me, I applied and was approved every time. Now, this was good in that the credit cards helped me to stay afloat during a very difficult financial time. Even on the job that did not pay enough, I was still able to pay those bills when they came. However, there came a time when I was in between jobs, because the one that I had played out. At this point, I had no income and was really struggling.
The Old Rules Don’t Apply
Growing up, many of us were told “Go to college. A good education will pay off. Getting a college degree is the only way to get a good job and make something of yourself.” The funny, but harsh reality of many college graduates is that employers are not exactly eager to hire us right out of school. It doesn’t even seem that they are impressed with us. Once on television, someone addressing an audience at a college graduation said to the graduates, “Congratulations! Welcome to unemployment.” Wow! That’s what we get for being good boys and girls, staying out of trouble, going to school and making something out of ourselves: unemployment.
Luckily, I was not unemployed for too long. At last, I got a job in my field and my finances seemed they were on the road to recovery. I began to catch up on bills through arrangements with my creditors and even had a nice surplus with each paycheck. Life was good! Then, the unthinkable happened. Hurricane Ike destroyed my family’s home. Unfortunately, my place of employment sustained an enormous amount of damage, also. What was I going to do now? Well, thankfully, my employer still paid us while we were awaiting for repairs to become completed so that we could return to work. Yet, we were not paid very much. During this time, I had to decide whether to eat and buy my asthma medications or continue paying credit card debts. Since I have a somewhat healthy appetite and enjoy my life for the most part, I decided to buy groceries and continue my medications.
When I returned to work, I was ready to resume my credit card payments. However, to my dismay, even though I had communicated my situation to my creditors, most of them charged off my accounts. This, sadly, affected my credit rating. I was so disappointed! For months, I had worked so hard in order to keep my credit score in the positive range, and now the very thing that I had tried so hard to avoid had happened.
Credit Management Company Benefits
Credit management companies usually offer subscriptions to their services for consumers who want to monitor their credit situation and who seek to keep their credit reports devoid of discrepancies. People also seek the help of credit management companies to repair their credit and to advise them of how to use credit wisely. These companies watch consumers’ credit reports to guard against identity theft and to help conduct the proper steps in the event that it occurs. They also, again, advise whether certain revolving accounts are helping or hindering individuals. In repairing credit, the companies can dispute items that should not be on consumers’ credit reports, have those items removed, and, in turn, improve customers’ credit scores. Sometimes, depending upon the company, they may even mediate between individuals and their creditors in order to resolve credit issues.
Last year, I sought out the services of a credit management company who helped me to do just that. In just two short months, I saw a great turnaround in my credit scores with all three major credit bureaus. It gave me a wonderful feeling when I was no longer turned down for new credit cards. Now, someone may wonder why in the world, after all of that headache, I would even dream of opening new accounts. Well, I was seeking t to re-establish my credit. I was engaged, and my fiancée were looking to purchase a home in the near future. So, it was my understanding that it was necessary. The credit management company that I corresponded with actually even advised that I open (just a couple of) new accounts and pay on time in order to improve my credit rating. Along with the work that they were doing, disputing negative items and having them removed, establishing new positive credit accounts proved highly beneficial.
Debt Counseling Programs
Debt counseling programs, are also available to assess and help create budgets for individuals in order to alleviate or eliminate their debts. Typically debt counseling agencies work closely with credit card companies, who also provide their funding. These agencies mediate between individuals and their collectors to negotiate settlements for debts owed. Those organizations who are non-profit, usually do not charge very much. However, those who are for profit may charge significantly more for their services. So in deciding on a debt counseling agency, experts recommend choosing wisely and being mindful of this. As part of the debt counseling process, some companies may help construct a budget for individuals to assist them with their debts. Counselors will take inventory of the debts consumers owe, as well as their household budget, and construct a repayment plan accordingly. Simply having a clear, concise, plan in place often helps people have a clearer picture of how they will get out of their present debt situation. It also grants them a better perspective and they feel better once they have a sense of direction.
Seeking the help of outside agencies, such as credit management companies and debt counseling organizations can prove highly beneficial. Although the economy is uncertain and life alters our situations for the negative sometimes, there are helpful options available to get us on track. Managing our credit can seem overwhelming and impossible, but it is not unattainable when we are armed and equipped with the right support.