Find a Debt Counseling Service

Don't allow the debt to become too heavy on you. Get help so it doesn't crush you, especially if you plan to become a first time home buyer.

Get Written Details of Their Credit Cleanup Services

To begin with, every debt counseling service is governed by certain laws and regulations which it must obey if it is to be in adherence with the law. Credit counseling services are required, under the Credit Repair Organizations Act, to provide consumers with written details of their services before any paperwork is signed.

Nonprofit organizations, banks and credit unions are not required to do this. Additionally, once an agreement or contract has been signed by the consumer, the consumer has three days to rescind the agreement.

Credit Counseling in Your Credit Repair Watch Out For:

• Do not pay for services up front! A credit counseling service may not request payment for services rendered, or to be rendered, until the services have been fully performed.

• Do not be fooled by any debt counseling service representative who says he or she can remove accurate information from your credit report. Only inaccurate negative information can be removed from your credit report.

  The majority of accurate negative information will remain on your credit report for seven years from the date the credit agency received the information from your creditor. Bankruptcies remain on your credit report for ten years from the reporting date.

  If any company representative states that he or she can remove legitimate negative information from your credit file...don't believe them!

• If a debt counseling representative claims that he or she can solve your credit dilemma by creating a second credit file--turn and run as quickly as you can! You think I'm kidding, right? I'm not! Creating a second credit file is ILLEGAL!

  This can cause serious implications for you. Do not be sucked in to this tactic! The way this works is the representative will obtain (or will ask you to obtain!) a second identification number through the Internal Revenue Service and will have you begin to accrue credit through this second identification number. This is also sometimes called "file segregation." Again, the IRS FROWNS ON THIS and will be most displeased!

If you decide to use credit and debt counseling to clean up your credit report, be sure to locate a legitimate company.

So, your search for a debt counseling service, instead of beginning like our proverbial needle in a haystack, may be more like searching for a small branch in a mound of newly mowed lawn grass. Not bad!

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