Preferred Credit Management

Your credit score is like a school report card. It can be biased, it can be wrong, it can be good, and it can be bad. However, contrary to the "permanent record" theory that teachers tend to threaten students with, your credit report only lasts about 10 years. So, a mistake on your credit report will only cost you money for about 10 years. If you want to fix errors now and save yourself thousands of dollars in interest payments on future loans, a credit repair company might be a good option. Or, if you want to prevent damage to your credit report because of bills you are unable to pay, you may want to talk to a consumer credit counselor. There are many options on the Web today for preferred credit management, and you owe it to yourself to do further research.

Debt consolidation is a process in which a company "buys" all the debt you have from your various creditors and then you pay the firm back. Often credit card companies "sell" the debt to the consolidator for pennies on the dollar. This is how they are able to offer you such low interest rates. Credit card companies are happier to receive 40% of the money than risk seeing nothing if you declare bankruptcy. Everybody is happy. The credit card company gets paid, the consolidation company (often nonprofit) makes money on the loan they give you, and you are happy because you can save thousands of dollars.

Credit card fraud is rampant with the advent of the Internet. Not only do people now have to contend with mountains of debt, but there are also thousands of scams out there designed to steal your money. Among them is identity theft. Be sure to keep accurate records of your accounts, view your credit report periodically, and make sure to keep information as private as possible.

That is why there are so many credit repair and debt consolidation companies today. There is too much easy credit, loans with high interest rates, and fraudulent individuals and companies. Look into preferred credit management some more.

Identity Theft - Government web site to help with this growing problem.