Once you've obtained credit, it's easy to be overwhelmed. You may overspend, become ill, or lose your job, making it difficult to keep up with your bills. If you cannot resolve your credit problems alone or you need additional assistance, you may wish to contact an agency like the National Foundation for Consumer Counseling: http://www.nfcc.org. This is a non-profit organization which provides member agencies by location for consumers who are in debt. A counselor from one of these member agencies will help you set up a budget and reduce your reliance on credit. They can also, where the circumstances are right, assist in arranging a repayment plan between you and your creditors. The toll free number for 24 hour automated office listings is 1-800-388-2227.
Some consumers turn to companies which claim they can fix credit problems. These companies, sometimes called "credit repair clinics," often make misleading promises to consumers, such as promising to remove a bankruptcy from their credit report and charge high fees for doing the same things consumers can do on their own. For a description of this problem, see a Federal Trade Commission alert titled FTC Testifies about Credit Counseling Abuses.
You need not pay someone else to learn what is in your file or to correct inaccurate information. See the
Credit Reports section of this website for more information about how to get and correct information in your credit file. If you have legal questions regarding the benefits and consequences of bankruptcy, you should consult an attorney through a lawyer referral service. A list of Washington state lawyer referral services is available on the
Washington State Bar Association's website. The referral services can direct you to attorneys with expertise in specific areas of law.
Similarly, some consumers are trying to reduce their debts by paying so-called debt reduction companies to help get them out of the red. These services are readily advertised on the Internet and many of these firms charge exorbitant fees for work consumers can do on their own. The “debt reduction” promises often come at a high price to the unsuspecting consumer when the service is never provided or these firms over promise what can actually be done to help.
Beware of “non-profit” companies that pay little attention to counseling you on personal financial discipline and, instead, aggressively seek “contributions” for debt restructuring and debt consolidation services. Consumers are often referred to loan companies affiliated with the “non-profit” organization and find themselves in a worse financial position than they were prior to contacting the debt consolidator.
No one can fix your credit history or repair your debts but you, through the sound management of your money.
For more information about credit and dealing with debt, visit the Federal Trade Commission Web site.
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