Skip to comments.Credit Repair Services (Help please)
Posted on 11/08/2012 6:27:43 PM PST by VastRWCon
Hello Freepers, asking for help from the smartest people I know of. My daughter got into a lot of credit problems, and well dear old dad is trying to help her out. I was wondering if anyone knows of a good reliable credit repair company. I am not so interested as cleaning up her credit as I am in getting all the different bills that she owes into a single monthly payment so that they can all be paid in full. Yes there are a lot.
Stop. She needs to pay them, not come up with a gimmick
Note: I am going to help her pay them all off(a month or two if possible), its not the money I am worried about, its getting them all known, balances, and who to pay so that the credit agencies are reported that they are paid in full. Her credit will have to repair the natural way over time.
Again, thank you Freepers sooo much for the replies!!! Please keep them coming as she will be reading this thread.
no such thing. If she can’t handle debt responsibly there are 2 tracks. bankruptcy or negotiating a no interest repay. both will impact her credit score, but calling and working out a long term payout will in the long term prove she is a good debt.
collection agencies buy bad debt for pennies.
Most of the credit repair businesses are NOT reputable and will only make her life even worse.
I would suggest that she consider filing chapter 13 bankruptcy. With chapter 13, her payments are rolled into a single payment and chapter 13 is structured so that she will not only be debt-free in 5 years, but her credit report will not reflect that she declared bankruptcy. This way she gets a fresh start with a clean credit record.
HOWEVER . . . . her credit report will likely still reflect that she had several accounts that were late and sent to collection. I don’t think that the aftermath of chapter 13 will remove that from her credit report until a full seven years have passed. Nonetheless, IMO, this is her best chance to clean up her debts and start fresh.
it’s called filing for chapter 13 bankruptcy, one simple monthly payment
Please consider bankruptcy, consult an atty who does a lot of that work, as it has gotten very complicated.
get her credit report off freecreditreport.com to find out all her creditors
“its called filing for chapter 13 bankruptcy, one simple monthly payment”
Best way. Then let time take care of everything else.
Don’t do anything without going to the Dave Ramsey site.
IMO, first thing is to call an attorney. If some of the debt is already in the hands of collection services, she might be advised to discontinue payment of all non-secured bills. I believe in Chapter 7 bills must be 90 days delinquent before the attorney can actually file with the court. Don’t bother paying for anything that she wants to make “good” on. All bills except for a few (student loans and taxes) will be part of the bankruptcy. Once you’ve hired an attorney, give collection callers the attorney name & ph#. Good Luck. Hope she learns that cash is king.
Yes. The current collection company that owns or is assigned the debt for collection is allowed on her report with the original creditor of the debt.
So, if she defaulted on a loan with ABC Auto loans and they sold or assigned the debt to XYZ Collections then both can be on her credit report.
I suggest you go to www.creditinfocenter.com and www.creditboards.com for info on cleaning up the reports. Much of it she can do her self. I am not sure paying someone to fix it for you is going to help. Most of the consolidation companies are owned by the very creditors she has.
no, stop. being a white knight is never good. I get the desire to help her. The question is how to help her. The issue is enabling. If this is a one off then ok. Sit down and make sure the entire problem is known. It’s time to be father not bank, law not rug.
Credit repair services are gimmicks and generally not worth the hassle of dealing with them. For the most part, they are owned by junk debt buyers and profit handsomely from providing a minimal amount, if any, real assistance to deal with the problem.
If you are serious about helping her consolidate the debt into a single payment, your only real choice is to go take out a loan and pay off the debts and have her make the loan payment to you each month to ensure that you don’t risk your credit for the sake of hers. Depending on how much damage has been done to her credit, you may be able to co-sign for a loan to consolidate the debts, but in the end, you’re still on the hook for the loan amount. If you take this road, I would gather her bills, call each of the creditors and negotiate a payoff amount - doing so in conjunction with a request for a ‘pay for removal’ may help salvage her credit (offer to pay the balance within 48 hours if they report the debt as paid on time and paid in full).
If you insist upon a firm to assist, I would recommend Lexington. They operate differently from other ‘repair services’ and can find a solution, but it will not be inexpensive nor a cure all.
Dave Ramsey, he has a website and radio show. Love listening to him.
Cut her loose. It’ll take awhile but it can be resolved if you just let her face the music
Although I’ve never needed one everything I’ve read strongly suggests that those outfits are,at best,useless...or worse.If things are that bad bankruptcy may be the answer.And then hope she learns a valuable lesson.
BTW, I’m learning tough love on my kids..It’s hard but, some times they need to do this on their own.
Give it at least two years and then go to reputable car dealers, not the ones who sent you the offer and got your name off the public filing. By this time, her credit score will be in the 680-720 range and you will actually get decent rates, maybe 3.5% or 4% from reputable dealers if you make a decent down payment.
Better yet, if she doesn't need a car, give it well more than two years. Her credit score goes up automatically every few months as she pays off debt.
He’s asking for a trustworthy way to help his daughter. He isn’t footing the bill.
Your advice sucks
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