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Approaching Credit Repair Steps

No one wants to be hit with high interest credit card bills. For some people, having a huge debt incurred without the right plan are things they think could lead them into trouble. These types of credit cards are not for everyone, though, so this should not be a concern for you.

#1 The credit card repair market is young. For many, the credit repair is an expensive skill to master. They are not trying to make any sort of profit by selling these cards. They are merely trying to relieve themselves of high interest rates and late fees. However, they should not be so surprised to be disappointed by one of these credit repair scams.
This type of scam seems to be very common in the credit repair industry. Most people who receive unsolicited credit repair offers give them the headline reason, to get high interest rate credit cards. Then they go on about how they completely avoid paying the actual monthly payments on these cards.

Here are a few points to check out before you fall victim to the credit repair scam and the pitfalls of credit repair scams:

1) Will the credit card company or a member of the credit repair communities try to make outrageous promises to get your pay-back for paying your credit card out of pocket?

Most of the credit repair communities try to make more than one false proposition. They attempt to make you sign up with a low rate for a low interest credit card.

They promise $125 a month, but they never bother to see if you actually pay. What is there to know is that they pretend to be able to see you’re contract down, but they aren’t. They are not the consumers they say they are.

They tell you that you can cancel the account for a flat fee that never applies. They tell you that you can cancel the account for a grace period when the period is over, but you never see the grace period start. They tell you that you can cancel at any time to further increase the interest rate in their account. Nevermind that no grace period is ever actually offered.

They routinely tell you that they will contact you in 30 days or so by phone to try and convince you to sign up for a better card with lower interest rates. Then they tell you that they will contact you at least three times in three months and thereafter. They tell you of no contact or no contact from companies by which you can be informed that you may be late with the card.

Those companies that call and inform you of problems on your account are not the same companies that give you immediate promises to pay back the money they charge you. A properly managed credit card account is not only free of problems but it is also guaranteed to bring home the phone. This is why the credit card repair community calls themselves credit repair groups.

We believe in helping people improve their current credit situation by informing them and teaching them about mistakes that may result from failing to pay their credit card bills. We believe that if you don’t follow through on these promises, they could end up in the same financial situation that you are.

If you notice those four basic mistakes on your credit report, it means that you are in trouble. If you do your homework, you will quickly see that you are NOT going to get anywhere without an overhaul of your credit. This is why you need to contact your current credit card companies up front if you want to make some headway in your quest to get your life back on track.

Credit Repair Companies

These companies do not seek to eliminate your responsibility for your debts. Rather, they repair the damage created by your insatiable desire to pay off your debts. The debt collectors are always out to get you, but the debt collection system is designed for you to be deterred because of the consequences that you will not be able to repay them.

There are creditors within the law that protect you. Not all are legitimate. If you have been in debt consolidation, debt settlement, or a debt settlement company then you should not worry about the companies that hold you accountable for your debt. The big concern that you probably have is that you will go down the drain of money and take a long time to pay off your loans. You should not even have the thought of transferring your past debts from one consolidation firm to another. Many bankruptcy laws do offer protection for creditors if you have already been out of the system.

Why settle for nothing plus high interest?
The answer may be obvious, but paying only the minimum monthly payment when you actually cannot repay them is a big fat pain in the ass. It has certainly decreased your debt load and also your financial flexibility, which is a big plus for your pocket.