Why Should You Dispute Incorrect Information on Your Credit File - Credit Score Improvement

By Veronica Carrillo

If you are in debt, you might assume enrolling in a debt settlement or debt consolidation program is your best option. Chances are that one of these programs is your best debt relief choice. On that same note, you shouldn't automatically overlook credit card counseling. Debt relief programs, like settlement or consolidation, help you get out of debt but you can benefit from the helpful tips that come along with credit card counseling.

Accurate Debt Total: For a credit card counselor to help you, information must be complied on your debts. In the past, you have been ignoring all those collection calls and letters. Today, things are different. Before you can seek debt relief and before you can take any action, you must know how much you owe. You might be required to gather this information yourself (by collecting your old bills or by calling your creditors), but some counselors and financial planners will provide assistance with gathering this information.

The Cause of Your Debts: One mistake that many individuals make is jumping right into a relief program. Both settlement and consolidation come highly rated and recommended, but they are designed to cure your debt. What was it that caused it? If you don't take time to address the root of the problem, you can get out of debt but you might find yourself back in trouble just a few years down the road. A good credit card counselor will help you see the cause of your debt and work with you to ensure that so-called cause doesn't cause anymore financial complications in the short-term or long-term.

The FDCPA is Uncle Sam's consumer credit counseling manual available totally "for free" on the Internet. The manual will tell you what you "can do" and what debt collectors "cannot" do. There are two main points to memorize to become your own credit counselor. The first is "never give a debt collector any information over the phone" and accomplish that task by telling the collector to "communicate with me in writing only" and hang up the phone. The only way a collector can coerce money from you is by your "admission" that you actually owe him money and you do not!

Creating a General Plan: As stated above, you have a number of debt relief options that include settlement or consolidation. Which one is best for you? It all depends on a number of factors and an experienced counselor can help you review those factors. With you, they will review your debts as well as your current financial situation. By closely examining this information, they will help you determine whether you should opt for settlement, consolidation, or another debt relief procedure.

In short, you can see that there are many different financial topics that a credit counselor might cover with you. They all have one important thing in common; they are vital to your success in seeing debt relief. Good luck!

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