This was a guest post provided by Rick.

Credit repair services are acting like divine saviors to get numerous clients to get out of their debts. These services are like a treasure or supporting pole to those who are not able to manage their money to repay their debts. Very often it is seen that high amount of loan installments or high rates of interest spoils the monthly budget of clients. It is also seen that even after getting into a debt clients do not keep control over their monthly expenditures.One of the ways in which you can repair credit is by consumer credit counseling. You can contact a counseling agency which will provide you with ways in which you can manage your finances and handle your budget.Credit repair helps such persons by granting them some exemptions in repayment of debts. These services also teach clients to maintain a perfect balance between their income and expenses. Choosing a wrong credit management company may result of wastage of time and money. We will discuss about ways to choose and deal with the right company for improving credit of an indebted client.

1)First of clients should take an overview of their needs related to reconstruction of credit. Then they should search for suitable service providers who may help them improve credit power. The process of credit reconstruction may be more complicated than the imagination of clients. They should choose a company that is adept at improving the terms of debt repayments by discussing their credit condition with money lenders and credit bureaus.

2)Clients should submit their credit history and credit report to the selected service provider for credit repair. The company examines the credit history of clients. It also studies their credit history prepared by credit bureaus to keep money lenders updated. In case of misinterpreted details in credit report, the company can dispute for the client with the bureau under Fair Credit Reporting Act.

3)Clients can choose such credit repair companies that work directly with credit bureaus. Such companies prevent bureaus from preparing reports containing negative remarks about the client. These companies also work and deal with debt collectors and money lenders. They prevent money lenders from imposing stiff conditions on clients for repayment of debts. The procedure involves insisting debt collectors to lower the amount of principal money or decrease the rate of interest.

4)In certain cases credit improvement services deal with all phone calls and letters of money lenders to relieve the clients. In case of presentation of an erroneous credit report by bureaus to money lenders, they can also challenge the legitimacy of a debt report.

Conclusion: Indebted clients should always search for such credit improvements companies that could help them in ways discussed above.

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So, you just declared bankruptcy, but now you don’t know where to turn, since you’re going to find that many banks and lenders won’t give you a loan for the next 7-10 years.

So, what can you do?  How can you purchase a car?  The following tips should be able to help you get on your feet, and get a car that works for you.

No need to be fancy - The first thing to keep in mind is that you need to learn from your mistakes.  You need to learn how to manage your money better, so there’s no need for a NEW car.  Instead, you will want to focus on a cheaper, used car.  There should be no exceptions.

Consider saving up - You can find cheaper cars that can run the right way.  Some sites such as MyCarForAGrand are dedicated to those that are looking for cars that are less than $1,000.  A $1,000 or a little more shouldn’t be that hard to save up.

Be cautious of private car lots – Most private car lots are a scam.  Don’t go there with the intentions of signing a loan.  You will find out down the road that you’re going to pay 22%+ for your rate.  Instead go to a reputable dealer in your area to find a used car that will work for your budget.

TIP: If you talk with a local dealership and explain your situation, they should be able to help you find a lender.  Not all the times will this work, but it’s always worth a shot.  If you don’t feel like driving, you can also call up to their financing department.

You may have to wait – If you don’t have the cash to purchase a used car in full, you may have to wait a few months to either save the cash, or re-build your credit score just a little bit.  If you feel this won’t be a good route, you could always consult with family members to see if they are willing to give you a car loan.

Overall, you should be able to buy a car eventually.  You may not be able to purchase it today, but if you either save up for a cheaper car, or find other ways to find a loan, a new / used car should come your way.

If you just signed up with a debt consolidation company, or you’re thinking about signing up for one, you’re probably worried about your credit score, and I don’t blame you.  Since many people take this route to avoid situations such as bankruptcy, and more, let’s take a look at how it should affect your credit score.

How the debt consolidation process works

I don’t mean to be blunt here, but debt consolidation is for those that are lazy.  Basically they do the dirty work for you.  They will negotiate for you, as well as give you one bill, rather than 15 each month.

An example that you can use…

For example, let’s say that you have 10 credit card / student loan based bills, and more.  Let’s say that the total of them equal out to $1,200 a month for a minimum payment.

The consolidation cop many will call up each one and try to get the bill lowered.  Now, they will add a “consultation” fee on top of it and you will pay one bill, rather than 10.

How it affects your credit score

Now, as long as the company is doing their job and paying the minimums on all  the bills, you’re going to find that you won’t have a problem at all.  It will be as if you’re paying the bills.  The more you pay, the lower your debt to income ratio becomes, therefore increasing your score, rather than lowering it.

Can it lower your score?

The only way that it is going to lower your score is if you stop paying your payments to the company, or you signed up with a company that isn’t living up to their word.

This is why you should get evidence each month on how they are paying your bills.  You will want to make sure that you get proof that they are paying each and every one of them.   A good company will send you a statement at the end of each month.

Overall, as long as you pay the payment to the debt consolidation company each and every month, and you’re dealing with a legit company, you should be okay with your credit score.

When you want to declare bankruptcy, you’re probably going to explore all options, before you do so, and I don’t blame you!  If you’re in the process of declaring, I would highly recommend that you get a bankruptcy attorney to help you with all the needs that you may have.

While there are far more cons than there are pros when it comes down to the bankruptcy process, let’s compare the two, and you can decide in the end on what is going to work the best for you.

The Pros of Declaring

You’re going to get the creditors off your back.  No longer are they going to call you and harass you for your payments.  Keep in mind that some debt will stay with you forever, such as student loans.

Many states will allow you to keep your car, home, as well as other living essentials.  Make sure you know your state laws.

Now, you will be able to start from scratch.  Consider it a clean slate, where you can learn from your past mistakes.

If you file the Chapter 7 route, you may find that the process is relatively quicker than you thought, with an attorney.

The Cons of Declaring

This will significantly hurt your credit score.  You will find that it will be very hard to get any type of loan, whether it’s a car loan, or mortgage.

While it may be on your report for 7+ years, many employers today will run a credit check on you.  If you want to get a potential job, you will find that you could be denied employment.  Yes, it’s unfair, but its the way of life today.

All the credit cards that you have today are going to disappear.

Again, some loans such as student loans will stay with you.  You will find that many bills will stay with you, and bankruptcy will only get rid of credit card bills, etc.

The public will know, as your name will pop in the newspaper.

Should you declare?

I would recommend that you consult with an attorney.  While you can read until you pass out, there’s a lot of false information floating around the Internet.  It’s up to you to do decide on if you should declare, or fight hard to pay off your debts.

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There’s a lot of you out there that probably owe some bills, and while a lot of you want to pay your bills, there are some that are legitimately not paying, because you’d rather put food on your family’s table, and I don’t blame you!

Now, if you’re getting call after call, day by day, and you think that they are violating your rights, you could be right.

First, let’s take a look at what your rights are as a human being, when it comes down to owing any company a certain amount of money for past bills:

• They can’t call your office.
• They can only call your home from 8AM to 9PM.
• They can’t abuse you over the phone.
• They can’t threaten you with violence.
• They can’t lie, or make something up that isn’t true.
• They can’t add any charges that you don’t owe.

If you’re looking at these and shaking your head yes, you’re probably wondering what you can do about the situation.

1.  Write them a certified letter and state that you want to be contacted via the mail only.  Make sure you give them all the information that they need in the letter, such as your name, account number, and more.  By law, they have to abide by this.  Make sure you make a copy for your own records as well.

2.  Contact the Better Business Bureau and look up the company that is calling them up.  If they have a bad grade, you may be dealing a with a bad company.  Feel free to vent your frustration with the BBB.

3.  If the problem tends to continue after the first step, I would strongly encourage you to contact your State’s Attorney Generals office, and explain your whole situation to them.  The Fair Debt Collection Practices Act protects you from incidences such as the above.

You can also file a complain via the following address:

FTC
6 Street & Pennsylvania Avenue NW
Washington, DC 20850

You can find that you can eventually take the company to small claims court and sue them.  If you go this route, make sure that you have as much evidence as possible.  While you may not get a major settlement, it will set the company straight with their practices.