Credit Repair Vs Debt Consolidation
Credit Repair Vs Debt Consolidation : When you hear about credit repair, we tend to think that lawyer credit repair or debt consolidation, but that is not always true. Both of these paths can help you to dig your way out of credit card debt and other kinds of debt, but they both have their advantages and disadvantages.
Credit Repair / Debt ConsolidationSo what are the differences between these two? Debt elimination and relief? Credit repair will involve getting your credit score to a level that allows you to get a loan, mortgage, or possibly an equity line of credit, but it will also involve you working to have the negative items removed from your credit report. It can be credit card, utilities, car loans, student loans, personal loans, and other Improving your overall FICO score can be necessary if you aren’t good about improving FICO scores and have really poor scores. If well done credit repair can significantly impact your scores then you can do almost anything, including move to a bad part of town, rent an apartment, get a great job, or even borrow money (even if with higher interest rates). 비아그라 퀵배송
So this is how it works: Improve your FICO score and you can borrow your way out of debt. If you don’t rely on this high score to get the loan, mortgage, apartment, job, or other credit account – you’ll quickly find out it isn’t as fool proof as you first thought. Even worse is the fact that even if these accounts do get closed you’ll still have affected credit for a while longer. Sometimes this can take years to correct (if it does correct anything at all).
Additional Information 1960’s main street was a very different place from today’s credit driven world. High interest rates were the norm and people relied on their credit for everything from a home loan, to credit cards, to a car loan, school loans, and pretty much anything you could ever think of. In many cases that was still too much to rely on. In fact in a lot of areas it was downright dangerous as people would get in some sort of debt and get overextended and eventually the debt would catch up to them in the form of foreclosure and bankruptcy. Lets take a look at how this affected the American consumer. 1960’s standard payment was 10.5% of the carton. That is almost $1300 today. Factor in today’s interest rates and that money ends up costing much more than most people would even think about let alone pay off.
Today that amount would be $30,000 and with a 30 year amortization (60 year mortgage, $30,000 for a car, $30,000 on a house, etc.) you end up paying well over $100,000 back in interest and that isn’t even including the principal. That amount would pay for the home of everyone who may have gone through that same situation and who now has a loan-free life. If the loan is forgiven then that’s an even better bargain as itgoingpriceless.
Credit Repair and Debt Consolidation looked different from decades ago. Television advertisements steamlined the concept and suddenly people who were deep in debt were looking for a quick fix to their problems. Combine that with the need to make those monthly payments on time and people who were once too poor and too square ended up with one big problem. It didn’t have to be that way at all and that is why this industry exists.