In these trying economic times, many of us have amassed some amount of debt, whether it be smaller and more manageable or so big that you are not quite sure where to begin cleaning it all up. In recent years, there have been many layoffs, failed businesses, and much inflation of the dollar. Our own government is swimming in debt to other countries; it’s no wonder the rest of us have trouble with financial situations.
You may feel overwhelmed with the amount of debt you currently owe. The first thing to do is step back, take a deep breath, and realize that there are millions of others out there dealing with the same problem. An Internet search can help lead you to some viable options for credit repair. There is actually credit repair software available for purchase that can help you do this on your own without having to pay major fees to companies that offer the same service.
If you are deep enough into debt that you feel hopeless, you may seek to file bankruptcy. You should try your best to fix your credit yourself and only use bankruptcy as a last resort. It causes you to accrue a lot of costs, involves a lot of paperwork, and damages your credit score.
Many people look at bankruptcy as a way to start over with a clean slate. This is not necessarily true. There are different forms of bankruptcy. Chapters 7 and 13 are the forms that are available to individuals. Chapter 7 is akin to a complete surrender. Yes, your debts will go away, but many of your possessions will be repossessed. To file for this type of bankruptcy, you must prove that you legitimately cannot pay off your debts. This may happen in cases of sudden illness or death of a family member.
Chapter 13 can be seen as a sort of payment plan. Creditors do get a portion of what you owe them, but you also have to pay a lawyer and a lot of other fees. If you’re going to set up a payment plan, why not just try to repair your credit yourself?
Using credit repair software can help you get organized and not feel so plagued by your situation. It can assist you with figuring out credit inaccuracies, which debts you can dispute, how to do so, and even help you create a system to keep track of your debts and disputes.
Don’t pay someone else to set up a payment plan and wipe out your good name when it comes to credit. You can fix bad credit and negotiate debts on your own, and you’ll be back on your feet in no time.