Why Debt Settlement Companies Don’t Offer the Perfect Solution for all Indebted New York Consumers

For many New York Consumers with unmanageable debt, debt settlement companies seem to offer the perfect solution. A lot of these companies claim that they can reduce debts and save consumers in New York a ton of money. However, in reality, many of these services exaggerate their rates of success and make promises that they cannot keep. In the worst cases, so-called debt settlement companies are just groups of scammers trying to take money from New York consumers in desperate situations. Of course, in some cases, good debt settlement companies can actually help indebted individuals. Yet, before signing up with any service, you should do your research and understand the risks involved. Consider alternative solutions, and choose the option that works best for your finances and credit score.

Common Problems Associated with Debt Settlement Companies in New York

Even legitimate debt settlement companies in New York sometimes offer consumers more problems than solutions. In fact, the most competent services are often at the mercy of creditors, so their success rates vary widely. The truth is that debt settlement companies can make all the promises they want, but they can only do so much. Some creditors will settle with consumers for less than what they owe, and some will not. This explains why some New York consumers do well with debt settlement companies, and others just waste their money.

Speaking of money, participating in a debt settlement program can get expensive quickly. While it is illegal for debt settlement companies in New York to charge consumers upfront for services, many still require enrollment fees. According to recent studies, many consumers in New York end up paying between $3,000 and $3,750 in fees over the course of a debt settlement program.

In addition, some companies advise consumers to stop making payments on debts until settlements are reached. So, in many cases, this leads to consumers paying late fees to creditors. Also, these delinquencies typically show up on credit reports and bring down credit scores.

Alternative Solutions for New York Consumers Considering Debt Settlement Services

Again, debt settlement services can work, but, in reality, there are no guarantees. Therefore, New York consumers with heavy debt should evaluate all of their options before signing up with a company. For example, credit counseling is available at no charge through non-profit organizations. Or, debt management services are available for consumers in New York with good, bad, and fair credit scores. Finally, in the most extreme cases, heavily indebted New Yorkers may benefit the most from declaring bankruptcy.

Depending on the size of your debt, it is possible that you could pay it down on your own. Of course, this will likely take discipline and a good plan. Most of all, paying off heavy debt requires strategic budgeting. Namely, you should cut out unnecessary expenses in order to free up more money to put toward your high credit card balances or high interest loans.

Of course, in the interest of protecting your credit score while getting debt under control, you should stay current with your other bills. It is also a good idea to limit credit card use until your existing debt is smaller and more manageable. Next, while bringing down your debt and improving your credit score, don’t forget to keep careful tabs on your credit reports.

Why New York Consumers Working to Rebuild their Credit Scores Should Regularly Check their Credit Reports

While you’re working hard to eliminate debt and improve your credit score, don’t let errors on your credit reports undermine your efforts. Unfortunately, in reporting consumer information in New York, creditors and the credit bureaus frequently make mistakes. Then, these mistakes show up as credit report errors that often damage credit scores.

Under the Fair Credit Reporting Act (FCRA), you have a right to accurate credit reports and the credit score you actually deserve. You may also, under the Fair and Accurate Credit Transactions Act (FACTA) request free copies of your credit reports from the three major credit bureaus every 12 months. To take advantage of this right, just go to www.annualcreditreport.com, and get your credit reports from TransUnion, Equifax, and Experian.

If you spot credit score damaging errors and mistakes on one, two, or all three of your credit reports, contact Credit Repair Lawyers of America in New York. Our credit pros will then take all of the hassle out of the dispute process, and deal with creditors and the credit bureaus on your behalf. Also, calling our firm gives you access to an experienced credit attorney who will do whatever it takes to get you clean credit reports – for free.

The Free and Legal Way to Get Better Credit in New York

Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.

Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Carl Schwartz at (646) 859-3045 or sending him a message through our contact page.

For more information about Free Credit Repair, please visit https://creditrepairlawyersam.com/credit-repair-free/.