For consumers with bad credit, there are generally two solutions available to you that do not require a loan or filing personal bankruptcy. The first is debt settlement, also known as debt negotiation. The second is credit counseling. Both services offer the convenience of one consolidated monthly payment and shorter timeline for paying off credit cards. Besides that, however, they are very different in their approach to debt relief. Settlement can get you out of credit card debt faster and is the more affordable of the two debt solutions. On the other hand, credit counseling is able to help you reestablish positive payment history by bringing any bad collection debts current (assuming this applies to you). Both options have advantages and disadvantages that should be considered before ever enrolling. As complaints proliferate against companies in the credit & debt industry, it is important to avoid any scams or frauds that target unsuspecting consumers. Let PayingPaul.Com match you directly with a pre-qualified and leading provider of debt help services today!
Credit Solutions Questions
What are the three types of consumer credit on my credit report?
Most credit reporting agencies classify the types of debt on your credit report as revolving credit, installment loans, and charge credit. An example of revolving credit is your credit card. It is considered “revolving” because the payments are not fixed. Some other common characteristics of revolving credit include: a) the borrower can use the credit up to a certain set limit (the credit limit); b) the amount of credit available fluctuate as a consumer borrows against their personal credit line and the repays it; c) the credit can be used repeatedly; d) the borrower makes payments based on what they’ve borrowed; and e) the consumer is allowed to pay the debt back in payments or in full at any time.
Common installment loans are car and home loans. They are considered installments because they are paid in a fixed amount each due date. In fact, in some installment loan contracts there are pre-payment penalties associated with paying more than what is actually due.
The final type is charge credit. This is often confused for revolving credit, but there is one key difference: the balance is due in full at the end of each month. American Express is one of the only issuers of credit like this anymore.
Does PayingPaul.Com recommend using Credit Solutions of America Corporation (CSA in Addison (near Dallas), Texas (TX) for debt help? They had a spot about them on NBC, but I was wondering if there was any other information or resources to check them out.
Although PayingPaul.Com cannot make any statements about the legitimacy of any credit counseling or debt settlement provider, we do encourage you to compare multiple vendors to see who you feel the most comfortable with. Simply fill out a form, and we can direct you to a company that we know is reputable for a free, no obligation consultation. You can also check out CSA with industry trade organizations like TASC (Trade Association of Settlement Companies) and USOBA (United States Organization for Bankruptcy Alternatives) and the Better Business Bureau (BBB) to learn more about their reputation for helping people.
I have an account that is being reported to the credit bureaus even though I have not paid it in over seven years. Isn’t this supposed to be removed from my history by now?
Yes. The first step you should take in having this resolved is to go through the credit resolution process with Experian, Transunion, and Equifax. This involves disputing the debt with them and citing the specific reason why the debt should be erased from your credit. If you have any documentation that you can provide in conjunction with this, it would also be helpful in getting it off your credit.