Although bankruptcy filers start with a poor credit score, several steps can help in improving their time. Some of those have been discussed below:

Obtain A Secured Credit Card
People filing for bankruptcy might be hesitant in applying for a secured credit card, especially those who had large amounts of credit card debts in the past. However, obtaining a secured credit card in this scenario facilitates rebuilding credit and improving it further. You should look for a card that charges an annual fee of less than $30 and an interest rate of 15%.

Check Your Credit Score
Most people avoid checking their credit scores, but it’s an important part to rebuild credit. People after filing bankruptcy should not only check their scores but try to check inaccuracies too. They should be checking their credit scores and reports regularly as small improvements often keep them motivated to improve their credits further.

Pay All Your Debts In Full Each Month
In an attempt to reestablish credit, bankruptcy filers should always pay off their debts in full each month. Such practices help in informing the creditors that you are managing your debts better. Moreover, full monthly repayments have a positive impact on your credit score.

Stay Patient
People filing for bankruptcy often try to rebuild their credit score as quickly as possible. However, rebuilding takes time and as per Consumer Financial Protection Bureau, a bankruptcy stays in a person’s credit report for at least a decade.

After filing for bankruptcy in Florida, a person might feel overwhelmed to establish good financial habits that benefit his/her credit scores on a long-term basis. Reaching a lawyer and following the filing process provides legal advice and guidance.

If you have any doubts or have recently filed for bankruptcy, you can consult Super Credit Repair. The company has experts who can guide you to improve your credit scores in Clearwater, Florida. They not only help in improving your scores but also guide you to maintain a good credit score for the long term.

Picture Credit: Freepik

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Widespread medical debts

Another survey conducted by UPI found out that most of the U.S. citizens are aware of at least a single person struggling with medical debts. Approximately one in seven people has someone living in the house with medical debt. The number of people having distant relatives with debts is likely to be significantly higher. These long-term medical debts can be mostly found in people that earn less than $40,000 every year. Around 28% of these households carry medical debt in comparison with 6% of households earning $1, 00,000 every year.

Fewer resources for covering the emergency

Various respondents to the survey lacked confidence in their capability to cover for medical emergencies. More than 25% of people admitted that they will be forced to borrow from someone to pay a medical bill of $500 and above. Others said that they will pay for medical expenses by using a credit card and carry the debts. Florida residents must develop an emergency fund just because of these reasons. Several people having insurance carry massive deductibles in the excess of $5000 in several cases. Therefore people need a lot of resources to cover for medical emergencies without getting a loan.

Nothing to fear in medical bankruptcy

When you have medical bills that cannot be paid there is only one option that the hospitals will tell you about and that is medical bankruptcy. You will need to file for chapter 7 protection that can eliminate all the medical debts. But, keep in mind that you can file for chapter 7 just once every 8 years. It means that you must not file for chapter 7 until you are finished with the necessary medical treatment. Most fears about medical emergencies are mostly overblown as found out by several people. Rebuilding your credit may take a lot of time but it is something many people have achieved. With the years rolling by the negative effects of medical bankruptcy start to reduce and it becomes to get car loans or other kinds of loans. Many such people have received offers for personal loans and credit cards immediately after filing for a medical emergency.

Implications of COVID-19 pandemic

With a sharp rise in healthcare costs in the U.S., the problems faced by Americans before the COVID-19 pandemic has only become compounded as newer challenges are being presented by the pandemic. During recent months 14% of U.S. citizens having COVID-19 symptoms have reported that they are avoiding the necessary health care due to the costs involved. More than 80% of the people expressed concern about rising drug costs because of the coronavirus pandemic.

The bankruptcy attorneys working at the Weller Legal Group have helped many clients in the Clearwater, FL area to eliminate debt and take charge of their lives. You can also confidentially discuss your problem. Call them now to schedule a consultation regarding medical bankruptcy.

Picture Credit: Pexels

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A primary benefit of working to repair credit is to reverse that status, over time and in steps that are proven to work for most people. Going from a place in life where every application for credit is met with “sorry – application denied” to “Welcome” is a huge improvement for those going through the process.

Having the ability to purchase a new car (or, even a used car) with a note and obligation to make periodic payments is life-enhancing. Applying for a new, higher-limit credit card is, likewise, a real step forward for someone who has gone from a 420-credit score to one that stands in the 650 to 750 range. People with “poor” credit are pariahs in the consumer credit world; people with “very good” to “excellent” credit ratings are, on the other hand, A-listers in that same milieu.

The ability to work freely in the area of obtaining and maintaining credit in a credit-driven society is a huge advantage for those who qualify. Credit, today, is the medium by which every type of financial transaction is undertaken – from making purchases that are small (from groceries to a haircut) to very large (a personal residence or a new car). Those who are “credit worthy” can use their sterling credit reputation and a pen to conclude these common types of transactions. Those who have bad credit histories and reputations know, intrinsically, that it is futile in most cases to even apply.

… a primary benefit of repairing bad credit is to become “credit worthy”. Successful credit repair is a process that gives individuals an opportunity to reverse their “status” in society – to go (over time) from being a “credit risk” to becoming a consumer who is pursued by lenders and consumer creditors, and thereby regain the ability to make purchases on credit…

Benefit #2: As noted previously, credit scores indicate the likelihood that a person will default on a credit card or loan obligation.

Having a low credit score indicates that a person is a riskier borrower than someone with a higher credit score. Lenders and companies that offer credit take “risk” into account when making lending decisions. One way to help ameliorate such higher risk with people who are “credit risks” is to charge them higher interest rates than their more credit-worthy counterparts.

Those with low credit scores who do manage to qualify for a loan or credit will pay more, over time, in the way of interest charged than those in the same boat who have a high credit score. This is simply a “fact of life” in the world of credit. It can be a very costly “fact”.

Interest rates have a huge impact on the cost a consumer pays for borrowing money. Loan payments are made up of Interest + Principal – low interest rate loans are easier to pay because there is less interest added to monthly principal payments. The length of time it takes to pay a loan, and the amount of total interest paid over the life of a loan are both factors that come with “benefits” when the interest rate is low rather than higher.

… another benefit of successfully undertaking credit repair is that the cost of credit (interest rates charged) is higher for people with bad credit. Likewise, other terms of borrowing (life of a loan, security required, etc.) can have a negative effect on people with bad credit or poor credit histories…

Benefit #3: Filing for, and completing, a bankruptcy can be the beginning of the credit repair process.

It is true that a bankruptcy showing on a consumer’s credit report is a negative that will remain visible for up to ten years post-bankruptcy. The fact that debts have been wiped clean (in Chapter 7) or paid down (in Chapters 11 or 13) pursuant to a plan are positive factors that redound to the benefit of the bankrupt consumer.

The “fresh start” that bankruptcy often affords a debtor is a part of the beginning of the credit repair process. A decided benefit of credit repair, then, is the fact that a consumer has the ability to move through bankruptcy and back into the world of consumer credit with an almost-clean slate.

Ancillary benefits also obtain after completing bankruptcy. For one, the stress of constantly trying to manage finances that are in disarray can begin to ease post-bankruptcy and as one begins to repair credit. Additionally, not having the burden of out-of-control debt can also relieve stress on personal relationships and in the work environment. Finally, the stigma that often attaches to people who have gone through bankruptcy – and even those who haven’t – is most often lifted when one goes from “credit risk” to “credit worthy”.

… ancillary benefits of repairing one’s credit include the relief of stress from dealing with “bad” credit, including stress at work and in personal relationships. The stigma of bankruptcy and of being a “credit risk” will also disappear over time… Credit repair allows people to “get their lives back” with a “fresh financial start”

Benefit #4: Finally, the fourth benefit to highlight is a compendium of advantages that attach when a consumer undertakes to repair his or her credit standing, worthiness, and risk factors. A credit-worthy credit history shows potential lenders that a consumer is likely to repay loans in full and on time. This will help a consumer lock in better rates and terms on car loans, home mortgages, and other financial products.

Beyond those factors, the advantages of good credit extend far beyond receiving better and lower rates on loans. The following are a few of those advantages:

• Qualifying for excellent credit card deals and offers – not all credit cards and credit card offers are the same. For people with very good credit, such deals include low interest rates,reward offers, and cash-back opportunities. Studies have shown that credit card “perks” encourage the continued use of cards for transactions which have the ancillary effect of boosting credit scores

• Receiving better car insurance rates – some insurance companies will factor in credit scores when setting monthly premium rates in order to better predict potential losses on customers. A low credit score will affect rates in a negative manner; a high credit score will have the opposite effect

• Landing a job – Some prospective employers will ask job candidates for their credit scores as part of the pre-hire process. They will use such information (after obtaining the job candidate’s permission) to look for “red flags” such as a prior bankruptcy or frequent delinquencies in payment to gauge whether or not a person who is a “credit risk” may also be an “employment risk”

• Improving chances of getting an apartment and no-deposit utilities – increasingly, landlords are looking at credit scores and reports to gauge whether or not a potential renter is a good risk. Likewise, utility companies now look at credit histories to determine whether or not a potential customer is required to put up a sizeable deposit before being taken on as a customer, or, in some cases, whether or not the customer needs a co-guarantor on the account

… the list of advantages to successfully undertaking personal credit repair include the areas of credit card worthiness, car insurance rates, and the ability to obtain a good job or suitable and affordable housing… the list is long and goes beyond the 4 benefits of credit repair as discussed in this article…

Picture Credit: whitesession

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Scam /skam/

verb
2. swindle.
“a guy that scams the elderly out of their savings”
synonyms: swindle, cheat, deceive, trick,
dupe, hoodwink, double-cross
(Merriam-Webster Dictionary)

The warnings are all out there – on the internet, in Public Service Announcements (“PSA’s”), and by word-of-mouth from consumer-to-consumer.

Do NOT fall for scams that promise easy, overnight “credit repair” or one-step “credit restoration”.

As any credit repair service or agency will gladly tell anyone with ears: “Credit repair can involve fixing bad credit in many ways… Many people, however, don’t have the time or don’t understand how to make their case, so they look into hiring a credit repair company…” (emphasis added).

Read that lead sentence (from a credit.com ad for THEIR credit repair service) carefully: “Many people don’t have the time…” and… many people “don’t understand” – two sure warning signs for consumers to guard their wallets when those are the first words in an advertisement (aka “come on”) by a – wait for it – credit repair company.

The consumer who is dealing with bad credit and thinking of hiring a “credit repair” company, agency, or “professional” will do him or herself a favor by first remembering the following:

credit repair businesses are, generally, for-profit enterprises.

First-and-foremost, these businesses are in the “game” to make

money (i.e. their first motive is not to help the consumer – rather,

it is to turn a profit and make money) …

Gullibly relying on “come-on’s” or “promises” is the first mistake that a consumer with poor credit should avoid. That consumer should ask: “is it a wise move to go deeper into debt – to a “credit repair service”, no less – to try to get out of debt and reestablish a good credit score?”

According to a recent report by the Federal Trade Commission (“FTC”), there are over 68,000,000 “score-able” consumers in the United States that have an average “credit score” that falls below 601 (meaning they have “bad” or “poor” credit). With a present total population of 326,766,748, the 68,000,000 represents over 1 in 5 of all Americans.

Put another way, 20% of the overall population is a fairly ripe number of prospects for credit repair outfits – many of them “predatory” and many of them fraught with “scams”.

Disclaimer: The above warning is not to say that all credit repair services or companies are “scam Mills”, “fly-by-night” predators, or “out to fleece” unwary consumers. The warnings are stated in the spirit of caveat emptor – “let the buyer beware”.

Non-Profit vs. For-Profit Credit Repair

Non-profit “credit repair” is usually couched in terms of “credit counseling services”. Non-profit credit counseling organizations receive funding from creditors. Such funding allows those agencies to provide services to anyone regardless, of income levels, at a lower cost. Such organizations do charge fees (remember this: “there’s no such thing as a ‘free’ lunch”). Those are usually minimal. For those in severe financial hardship, fees are often waived. And, no one is turned away because of an inability to pay or they are just shopping around for alternative debt management solutions.

By contrast, for-profit credit repair or counseling services charge fees that are generally much higher because of the profit motive and the need and desire to make a profit. With the for-profits, additional and alternative funding sources are not available to offset any of the costs to the consumers.

One highly-regarded and well-known non-profit credit counseling organization is American Consumer Credit Counseling (“ACCC”). The ACCC is approved by the Department of Justice to provide pre-bankruptcy credit counseling and, for those who ultimately file for Chapter 7 Bankruptcy, post-filing debt management education and counseling. The ACCC provides a wide range of services, from credit counseling, pre-bankruptcy services, and post-bankruptcy filing education.

Most for-profit agencies deal primarily with the three major credit reporting agencies (i.e. Experian, Transunion, and Equifax) and focus primarily on “repairing” errors and inaccuracies in a consumer’s credit report.

Repairing Credit on Your Own

While dealing with “credit repair” and “restoration” may seem like a monumental task, it does not rise to the level of “rocket science” by any standard. Granted, most people with credit “problems” are stressed. They may find any task that takes time away from their family, a job, or everyday endeavors onerous and burdensome. Stress and credit problems go hand in hand and that is a given. However, dealing with credit repair issues and taking charge can be reduced to about five or six fairly easy, manageable steps. Consider the following:

Step One: Know your credit situation – find out how “bad” it really is.

A consumer should begin the process by obtaining copies of their current credit reports from each of the three major credit reporting agencies. Every consumer is entitled to obtain – FREE of charge – an annual copy of a credit report from each of the agencies.

The annual free report can be obtained from: www.annualcreditreport.com or by calling: (877) 322-8228.

Step Two: Once a consumer obtains current copies of all three credit reports, the next step is to study them carefully, looking for errors or inaccuracies.

First, check all identity information such as names and name spelling, social security numbers, and address information. Errors in identity information will have a negative impact on credit scores.

Second, examine information relating to credit cards, outstanding debts, and major purchases for accuracy. Mistakes and errors will likely be found. In that case, make a copy of the report in question and highlight the questionable entry or entries.

Third, write a letter to the reporting agency in question (a copy can also be sent to the “data furnisher” for the questionable entry – but – the “complaint” should be directed, first, to the credit reporting agency). All records should be retained, and all notices, complaints, disputes, and follow ups should be in writing and sent via certified mail – return receipt.

Step Three: Work diligently to clean up credit AND live within your means going forward.

This means consumers working to “clean up credit” should pay all bills on time 100% of the time, pay down debt – especially credit card debt – and avoid incurring new debt, and avoid applying for new credit (i.e. loans, credit cards, etc.).

Step Four: Don’t miss payments and don’t be “late” on making payments when due.

Consumers who are “behind” in paying debts – especially credit card debt – should do all they can possibly do to “catch up” and become current. The single most important factor affecting a credit score is ON-TIME payments. Miss a payment, or even pay “late” will negatively affect a credit score. Always being on-time and NEVER late will help repair credit and have a positive affect on a credit score.

Step 5: Credit cards can be the ultimate nemesis of a consumer. They are easy to use and even easier to “abuse”.

Managing credit card debt is one of the best ways to improve credit scores and credit. Consumers should work diligently to pay down credit card balances, not over charge credit cards, and avoid applying for new cards (or any “new credit” at all) while working to positively improve a credit score and reputation.

Conclusion

Not all “credit repair” companies are evil, and not all are out to perpetrate a fraud against debtors and consumers. But – remember the watchword phrase caveat emptor and always beware.

Non-Profit credit counseling agencies exist and generally charge less than for-profits.

In the end, a consumer seeking to improve his or her credit and/or credit score may be well-advised to give it a shot to work on their own at NO cost out-of-pocket.

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“To file, or not to file? … THAT is

That is a question that thousands of debt-burdened debtors ask on an annual basis: “Should I file for Chapter 7 bankruptcy?”

Another question often asked is: “What are the alternatives to filing for bankruptcy?” And: “If any”?

This writer is of the belief that low cost, non-profit-based credit repair and counseling can be a viable alternative to taking the bankruptcy route – not exclusively, but as a first-choice alternative. What’s to lose by at least exploring the alternatives of “repairing one’s credit”, improving one’s credit score significantly, and using restored credit wisely and beneficially to support one’s “credit worthiness”?

If a consumer gives credit repair or “credit restoration” a try, the least he or she may lose is time. If credit repair doesn’t work for an individual after a reasonable length of time, the bankruptcy alternative still exists. “Nothing gained…” does not necessarily have to mean a “loss” all the way around.

Not long ago, being declared a “bankrupt” (yes, that was the term applied to those opting to file for and go through bankruptcy) was a social and economic stigma on the filer. People went to great lengths to hide the fact that they “went bankrupt” – even though, taking advantage of the bankruptcy laws is both legal and legitimate.

With the foregoing in mind, let’s take a brief look at both alternatives – bankruptcy and credit repair – to see if there are advantages and disadvantages with those options. We’ll start with the basics of Chapter 7 bankruptcy.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy – commonly referred to as “liquidation bankruptcy – is the simplest and most common form of bankruptcy. In Chapter 7, if a debtor has assets that are not protected by an exemption, a Court-appointed bankruptcy Trustee may sell the assets and distribute the net proceeds to the debtor’s creditors according to priorities set forth in the United States Bankruptcy Code.

In exchange for accepting those terms, at the end of the bankruptcy case the debtor is granted a discharge by the bankruptcy court. In a discharge, most of the debtor’s liability for personal debt is wiped out or forgiven. Statistics show that in almost 99% of all individual Chapter 7 cases, the Trustee closes the case at discharge without having sold any of the debtor’s assets that might have been liquidated to pay debts.

Prior to 2005, obtaining a Chapter 7 discharge was quite a bit easier than since “reforms” were adopted in that year. Today, a debtor’s eligibility to file for Chapter 7 protection is governed, in large measure, by the means test. Some high earners may not be eligible to file for Chapter 7 bankruptcy if their debts are primarily consumer in nature. Those who are ineligible to file under Chapter 7 because they did not meet the standards of the means test, are eligible to file under Chapter 13 of the code.

A Chapter 13 filing is known as “reorganization” or “repayment” bankruptcy – a debtor must come up with a repayment plan that lasts over a 3 to 5-year period. Each eligible debt is included in a repayment schedule that is worked down monthly by regular payments. At the end of the plan’s period, remaining unpaid scheduled debts are forgiven in a discharge.

Briefly, Chapter 7 works as follows:

• Exempt property (an inexpensive automobile, household furnishings, equity in a primary residence, etc.) is retained by the debtor seeking a “fresh financial start”
• Non-exempt property is sold by the bankruptcy Trustee and the proceeds paid to creditors per formulae in the Bankruptcy Code
• At the end of the case, a discharge (release of personal liability) of all qualifying debt is granted

For some debtors, filing for Chapter 7 bankruptcy (or being re-directed to Chapter 13) does not make financial sense. For those with certain characteristics and status, filing for bankruptcy makes the most sense. The following are some of the factors that “make sense” as reasons for filing for Chapter 7 bankruptcy:

Debtor’s income meets discharge qualifications – If a debtor’s income is below their residency state’s household median income he or she is putatively eligible to file for Chapter 7. The determining factor re: qualifying is the aforementioned “means test” – a test that analyzes debtor income after allowing the subtraction of certain deductions. Income that is below the states median household income qualifies a debtor to file under Chapter 7

Debtor is “broke” after paying monthly household living expenses – Debtors who pass the means test may still not qualify to file under Chapter 7 if they have money left over (disposable income) at the end of the month. There is a presumption that debtors who have “disposable income” can pay creditors. In such a case, the Chapter 7 filing would be converted to a Chapter 13 filing or dismissed for failure to qualify

Debtor doesn’t own much property – In Chapter 7 bankruptcy, a debtor can keep (“exempt”) property that is needed to maintain a modest home and employment. Bankruptcy property exemptions are controlled by the laws of a debtor’s state of residence – debtors need to check their own state’s laws to determine which and how much of their property is exempt

Home mortgages and car payments – in most cases, home mortgage and automobile payments qualify for exemptions in Chapter 7. If a debtor is current on such debts, and can keep up with payments going forward, the bankruptcy automatic stay provisions will prevent the foreclosure on real property and the repossession of an automobile. The debtor remains personally liable for the debts and may face foreclosure or repossession in the event of a default

Some debt is non-dischargeable – income tax liabilities, court-ordered child and spousal support obligations, and most student loans are not dischargeable in bankruptcy. If a debtor’s obligations are mainly of this nature, Chapter 7 may not be the right course; rather, Chapter 13 bankruptcy may be a viable alternative.

On the other hand, if most debt is collection accounts, outstanding credit card balances, medical bills, personal loans, unsecured judgements, or overdue utility bills, it may make more sense for the debtor to undertake a Chapter 7 filing

“Self-Help Credit Repair” – a Viable Alternative

The effects of “credit damage” can be far reaching. As many a debtor has learned, it doesn’t take much to end up with bad credit. As one pundit noted, “You can ruin your credit score before you realize you even have one, or before you realize how vital it is – in this day and age – to have a good or excellent credit score”.

Amen!

There exists an actual credit score scale that ranges on the low side from 300 to 850 on the high end. Consider a credit score of 600 – somewhere in the high-middle on the above-noted scale. If a consumer has a credit score of 600, things could be worse – but – credit scores of 630 and lower are “poor”. Someone with a score below 630 will likely be denied for credit cards and loans. Such a score also likely means higher interest rates on the credit one with such a “poor” score does manage to obtain.

Having a low credit score or a poor credit history (i.e. “bad credit”) can seriously impact a consumer negatively in the financial sense. A low credit score indicates to lenders – and to potential landlords and employers as well – that a person is a “high-risk borrower”, tenant, or employee. The result of a low credit score can mean the denial of credit, being turned down for rental housing, or a lost employment opportunity.

Some of the damaging side effects of having “bad credit” (and the following list is by no means all-inclusive or complete) are:

• Being subject to higher insurance premiums
• Being subject to higher interest rates on loans, credit cards, etc.
• Being subject to having loan and credit applications denied
• Difficulty finding or changing employment
• Challenges in starting a business
• Denial of application for rental housing

Some may wonder, “whose fault is bad credit?” – and the universal answer is probably the debtor with bad credit.

A consumer’s credit score reflects how he or she has handled their financial obligations. Credit scores are based upon information that’s been reported to the credit bureaus by companies associated with credit card issues and lenders.

Consumers who pay on time and never miss payments when due will have good credit. Those who are chronically late in making payments, or don’t pay some bills at all, are the ones who are carried on the books as “poor credit risks”. They are the same consumers with “poor” credit scores.

People with “poor” credit scores and reputations are more likely to take the bankruptcy route and not consider the alternative of attempting to improve their overall credit situation (i.e. work to improve a poor credit score, make an honest effort to “catch up and stay caught up”, not apply for new credit in any form, etc.).

There are many “credit repair” companies that promise to “restore credit” or “improve your credit score dramatically. Some are for-profits companies, and others are non-profit organizations. Consumers should know and consider the following: anyone can do all the same things a credit repair company can do by taking the DIY route to credit repair.

Those with bad credit AND a different mindset may want to undertake a “do-it-yourself” (“DIY”) approach to the task at hand. For those, the steps are fairly few and simple enough to almost assure success for all if diligently worked. Some of those steps are:

• Start with the Credit Report – First, obtain up-to-date and current copies of the consumer’s credit reports from the three credit reporting agencies, Experian, Transunion, and Equifax… by law, a copy of each report of the three agencies is available to every debtor on an annual basis (see annualcreditreport.com), once the reports are in hand, study them carefully for errors and inaccuracies
• Pay attention to “identity” errors – errors regarding debtor names, social security numbers, addresses, account numbers, etc. can have an adverse impact on credit scores, credit reputations, and credit worthiness
• Learn / know how to read a Credit Report – all credit reports contain personal identifying information, detailed history of all associated credit accounts, public records (bankruptcy, tax liens, judgments, etc.), and inquiries from companies that have “pulled” a consumer’s credit report
• Determine what needs to be repaired – the following is the type of information that needs to be repaired:

• Incorrect information, including accounts that do not belong to the consumer, payments that have been incorrectly reported as late, missing information, etc.
• Past due accounts that are late, “charged off”, or sent to “collections”
• Maxed out accounts that are over the credit limits

• Dispute credit report errors – always initiate a dispute and request for action with the appropriate credit reporting agency; all communications should be written and sent via certified mail, return receipt service (using certified mail gives the consumer a “proof of mailing” and keeps track of the response of the credit agency that typically have 30 – 45 days to respond to disputes and requests)
• Take care of “past-due” accounts – “payment history” is 35 percent of a credit score. A negative payment history record impacts a credit score more than any other factor. A credit report status of “current” or “paid” is a move toward improving one’s credit score. The only thing worse that a “poor payment history” is the “charge off”. A “charge off” occurs once an account is 180 days “past due”. “Charge offs” are the worst account status a debtor can have.
• Resolving Collection Accounts are a High Priority (while taking care of “past due” accounts at the same time)
• Limit, as much as possible, credit inquiries – “credit inquiries” are added to a credit report each time a company “pulls” a consumer’s credit report. Too many credit inquiries hurt a credit score and the ability to get approved for new credit

The foregoing, briefly, is a suggested manner to accomplish “DIY Credit Repair”. The listing of the foregoing steps and suggestions is not all inclusive or the only steps to take. The foregoing gives interested consumers a look at one alternative to filing for bankruptcy when “the end of the financial road” has been reached. Keep in mind – DIY repair costs little more than a consumer’s time and initiative.

Bankruptcy, on the other hand, can come at a much higher out-of-pocket cost and still, today, the potential “social cost” of stigma.

“To file, or not to file? – has the question been answered?” Answered “sufficiently”?

Picture Credit: Melinda Gimpel

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