Broken By Your Credit Card? Credit Repair Service Can Help

Negotiating Credit Card Debt

Sure, we all love them but when misused, a credit card can break us.  Too often, there is no self-control associated with credit card use, which means you are quickly in debt and then losing sleep over it.  If you are tired of being drug down by credit card debt, we have good news.  Credit card debt assistance services are offered throughout the country, providing services online and in person.  Although not every company is honest, the Federal Trade Commission or FTC has developed a number of safety guidelines that help consumers choose a reputable company.

What to Look for in a Scam

Just as there are many different options of credit cards, you will find as many, if not more debt reduction companies to match.  When looking for a service to help you, make sure they follow federal laws.  Most importantly, if a company makes outlandish promises, you should be suspicious.  These companies should have one goal in mind  teaching you better money management for life, not using various services to fix the problem temporarily.  Therefore, if you read advertisements for quick fixes, rather than financial education, beware.  Some of the more common statements made associated with a scam include the following:

Repair your credit " 100% guaranteed (this is impossible) Get a new credit identity (this is illegal) Get all bankruptcies, low credit scores and liens from your credit file eliminated (ditto) No credit problem to bad for us to fix (this means they are stupid)

To help get rid of your debt by credit card, credit repair services are required by federal law to let you know of what actions you can undertake for free.  For example, if they insist that you have to pay to get your own credit report, get up and leave.

All you have to do to get a copy of your reports from Experian, Equifax, and TransUnion is to request one in writing, fill out an online form, or call them on the phone.  Now, if you want to find your credit score, which is different from the credit report, you would typically be charged a small fee.

Understanding the Credit Repair Organizations Act

Just like credit cards, credit repair services are big business.  The FTC regulates them firmly.  And, for your protection, there is such a federal law called The Credit Repair Organizations Act, which you should be aware of.  All debt reduction services are required to let you know your rights BEFORE you pay any fees.

In addition, these companies are not allowed to charge you until all of the work is done.  Therefore, if any false claims are made regarding the services offered, you have the responsibility to let the FTC know.  After all, this would be illegal action on the part of the debt reduction company.