Legal Bankruptcy Repair
Drowning in debt
1 in every 72.8 households declared bankruptcy in 2003, a rate that has nearly doubled over the last ten years. Financial experts blame this increase on the growth of consumer debt in relation to several years of economic recession. In other words, consumers with less money available continue to meet their family's financial needs through credit. Is it any wonder many consumers have found themselves literally drowning in debt?Bankruptcy, an option?
Although bankruptcy provides financial and emotional relief, the resulting black marks on credit reports can continue to haunt consumers for up to ten years. Future creditors view negative listings as a signal that the borrower could not manage their money. This isn't always the case. Sickness, job loss, or other unexpected emergencies can take their toll on a family budget already stretched to the limit.
The Credit Bureaus' dirty secret
Bad credit isn't just embarrassing; it's expensive. Each year consumers with less than perfect credit are forced to pay thousands of dollars more in interest rates for such necessary purchases as cars and homes. This is particularly unfair if the information on their credit report is wrong. According to a June 2004 study by the consumer advocacy group, U.S. Public Interest Research Group (U.S. PIRG), as many as 79% of credit reports have errors - 25% of which are serious enough to potentially result in a credit denial. More than half of the reports had information that was either outdated or belonged to someone else.It's your right
Disputing items on a credit report is a consumer's explicit right under the Fair Credit Reporting Act (FCRA.) Credit report repair is as legal as pleading "not guilty" in a court of law. It is entirely within an individual's right, and the freedom to do so is protected by law. However, contacting all three major credit bureaus and dealing with the hassles, red tape and follow through, can be frustrating and time consuming. For many consumers, hiring an experienced credit report repair firm is the wise solution.Unfortunately, credit report repair, like other financial service companies, have their share of inexperienced or even dishonest firms. Before choosing a credit repair expert, it is important to know who you are dealing with.