29 Jun Choices of people with debts and bad credit
When a person has a lot of debts and in result bad credit, they basically have very limited choices:
1- Apply for bankruptcy which they have to talk to a bankruptcy lawyer and get details and find out
If applying for bk is a good choice. for most people who may have small debt it may not be a
good choice because it stays in your credit reports for 10 years.
The good thing about applying for bankruptcy is you only pay a lawyer and if you qualify all your
Debts except some (talk to the lawyer) will be wiped out.
2-Leave it alone and don’t do nothing
In this case as you know, the creditors may sue you, may garnish your wages or bank accounts etc.
When you are applying for a home loan or credit card or buying a car, the creditor may not give you
the loan, the car or credit card or if they do you will pay an arm and leg.
For example, on a $20,000 you may end up paying an extra $20,000 in interest alone or on a
$500,000 home loan of 30 years for each point of interest you end up paying over $100,000
(instead of 4.5% if the charge you 5.5 % interest)
Try to restore your credit so you can get good loan rates and good credit cards
You can try to do this on your own and we are required by law, that you can do it on your own
However, an expert which makes his/her living out of this may do it better and faster
In this scenario after checking the reviews and reputation of the credit repair company
It is good to know that credit repair companies make money in 3 different ways or the combination
of the 3
A-Membership based firms like a famous one which are membership based meaning they want to
keep you as a member as long as they can because it is to their benefit. You may pay $100 or less a
month for 6 months to a few years hoping they fix your credit but because they send their disputes
one a time your credit will be the hostage for long time even if they can restore your credit and
many of this companies will not do all the steps of credit repair which we will discuss later.
B-Advance fee companies which make you a lot of promises of producing results and money back
Guarantee (they have to do that to get your advance money which is illegal in California)
I am not just talking about $50-$100 set up fees, I have calls every week of people who have paid
Thousands of dollars to these credit repair companies with no or little results.
C-Performance based companies like baby boomers financial services
Which they bill you after each deletion or repair.
In this type of companies, you only pay for each result after the proof, so the company is taking all
the risk not you.
We at baby boomers financial services are here to help you live a happier through fixing your credit
so you can get the credit card, the car or the the house you always wanted.
To be continued,
Call me at 858-774-0231 or firstname.lastname@example.org