Don't feel alone!
You aren't the only one in debt
You Are NOT Alone!
Millions of Americans Have Credit Problems
If a collector is calling you for repayment of a debt, please be aware that you have a lot of company. Every year, at least 5.0 million Americans find themselves being approached by a collector and asked to repay a delinquent or defaulted debt. Please, also be aware that most of these 5.0 million American consumers are not “deadbeats" or "slackers" or anything of the kind. These are people who have encountered one of life's many problems, such as divorce, ill-health or loss of job, and are now in the midst of trying to pay more bills than they have cash to cover.
Even when this consumer’s life returns to normal, he will face two major problems:
1. Unless he settles or repays his defaulted debts, collectors will remain a part of his life for a number of years, so he will have a continuing need to address the many demands they will make on him. His unpaid defaulted debt will be recycled through numerous agencies for years, in the hopes of eventually recapturing the defaulted funds.
2. This consumer, if he responds poorly at this time, will be very vulnerable to paying thousands and thousands more for future borrowings. He will undoubtedly apply for more credit in the future, which may be exceptionally costly, as the lending community offers him only the highest rates; those reserved for the nation’s highest risk borrowers. The car in his driveway will not last forever and he will most certainly be attempting to replace it before seven years elapses, the time required for charged off, defaulted debt to age off his credit report.
No “Easy-Way-Out”
While we would like to tell you that there is a really easy way to “make it all go away,” we have reviewed many of the "easy-way-outs" and have found that there really is none of much consequence, despite much advertising to the contrary. Unless you are one of the unfortunate victims of an accounting error or horribly deficient products, we have not yet found any legitimate way to make the "bad news” go away permanently on your personal credit report. Nor, is there any way to "start-over" and not incur substantial costs. So, while "credit repair" clinics continuously offer to "wipe your slate clean,” it has been our experience as executives in a major credit bureau that for the vast majority of consumers, there are no such easy answers. As credit bureau executives, we have seen millions of attempts to get accurate information removed from a consumer’s credit report, nearly, all of which failed to make any permanent changes. And, after many interviews with lenders, we have concluded that there are many substantial future costs awaiting the consumer who chooses bankruptcy as the "solution" to his current dilemma. Just ignoring his defaults will leave this consumer very vulnerable when he is attempting to get new credit in the future. He will pay a substantial penalty for his procrastination, which could
easily cost him thousands of additional dollars.
- In particular, this consumer will be in a very weak negotiating position relative to his former creditors. His new creditor will undoubtedly ask him to resolve his defaulted debts and he will find his former creditors very unwilling to grant discounts and waive accrued interest and other fees, once they determine that this consumer is applying for new credit. And, his former creditors will discover this because his new credit inquires will be posted on his credit report. His inability to negotiate for discounts could be quite costly; especially if he has numerous defaults and owes thousands of dollars.
- Additionally, this consumer may be forced to pay much higher interest rates to his new creditor. The new creditor will take into consideration that the debts were not repaid voluntarily, which will often place this consumer in a higher risk, much higher interest rate category. This, too, can cost this consumer thousands in additional interest and fees for larger purchases.