Credit Repair and Debt Consolidation Information
If you're like most Americans (and consumers worldwide, for that matter) over the age of 18, you owe at least a small amount on a mortgage, credit card, or car loan.
Unfortunately, especially on loans made for items other than real estate, most of us owe more than just a small amount, and finding a solution to our debt problems is a constant concern.
The purpose of this site is to help you find a solution to your credit and debt problems. If your debt problem isn't large, simply putting together and sticking to a budget might be all that you need to do.
On the other hand, more severe problems require other types of solutions. Some typical options available are credit repair, debt consolidation, debt negotiation, and bankruptcy. Most problems can be dealt with without resorting to hiring outsiders and paying them exorbitant amounts of money. All you need to do is spend some time reading up on the basics, which this site provides for you.
If, after educating yourself on the basics of credit repair, you decide that finding a professional to help you with the task is what you want to do, you'll be better able to select one that's right for your personal situation, and will be able to assist that firm in finding quick solutions to your particular situation.
But first, we need to understand the terminology in order to get a handle on what it is we need to do to find a solution. Here are the main terms we need to be familiar with in order to make those choices that may well affect the rest of our lives:
Credit Repair
Credit repair is the practice of improving or rehabilitating one's financial reputation (credit score) or creditworthiness. Although sometimes considered controversial, as long as ethical measures (such as eliminating mistakes on your credit report, paying off debt, consolidating debt from many accounts into one, and other sound financial techniques) are used, credit repair is a positive step in improving financial standing and qualifying for lower interest rates. ... (read more about credit repair here)
Credit
Credit is most commonly defined as the act of giving recognition or approval. In the financial sense, it is the act of a lender approving the transfer of money between their accounts and the borrowers. ... (read more about credit here)
Debt
Debt is the state of owing something, often money, to someone else. The debtor has an obligation to repay the lender the amount owed (principal amount), and usually an additional amount (interest) is given for the privilege of spending money that wasn't theirs. ... (read more about debt here)
Credit Bureau
A credit bureau is an agency that gathers and stores credit history about consumers, and makes that information available to lending institutions. In the U.S., the three major credit bureaus are Equifax, Experian, and Trans Union. ... (read more about credit bureaus here)
Credit Score
Your credit score is a statistical assessment of your creditworthiness, in other words, your probable ability to repay a loan or debt. Some factors taken into consideration are payment history, amount of outstanding debt, income, types of debt, negative information on file, etc. The credit score is usually a number between 300 and 900, and attempts to predict the amount of risk a lender is taking if they grant credit to the borrower. Higher scores are better, and mean the borrower is a more favorable risk and will be more likely to make consistent on-time payments. ... (read more about credit scores here)
Debt Consolidation
Debt consolidation is a strategy used to better manage debt problems. When consolidating debt, a consumer typically arranges with a lender to replace several bills with one, usually resulting in either a smaller monthly payment, and/or a lower interest rate, which will allow more of the payment to go towards reducing the principal rather than the interest. ... (read more about debt consolidation here)
Debt Negotiation
Debt negotiation, sometimes known as debt settlement or debt relief, is the process of negotiating with one or more creditors to improve the terms on existing debt. Sometimes it's as simple as calling up your credit card company and asking for a better rate. ... (read more about debt negotiation here)
Bankruptcy
Bankruptcy is a legally declared inability of an individual or organization to pay their creditors. Bankruptcy can be initiated by the borrower or by the lender. When bankruptcy is declared, most of the debtor's assets will be distributed amongst the creditors. However some assets (for example a home) are sometimes retained by the debtor. The act of declaring bankruptcy protects the individual from being harassed by his or her creditors, but is a black mark on his or her credit score for many years. ... (read more about bankruptcy here)
Information Available On This Site
There is a wealth (no pun intended) of information available on this site about all the topics mentioned above, and more is being posted on a regular basis. In addition to the information we've personally compiled, which is listed on our main site map, we've also put together a blog (short for web log for those new to the 'net), on which we report on quick thoughts, articles found on other sites that we've received authorization to share with you, and resources that will help you better manage your resources.
I hope you find this site useful, come back often, and refer your friends and associates. I give you my word that I'll do everything in my power to keep the information fresh and valuable. Thanks for visiting.