[VastRWCon]

She has bills and also bills from collection agencies and what is confusing is are the collection agencies legit, duplicates from the originator of the bills? I was thinking it would be easier to work with a credit repair service instead of tyring to figure out each bill. Yes there are many. Any advice would be much appreciated. Thanks!

[cableguymn]

Yes. The current collection company that owns or is assigned the debt for collection is allowed on her report with the original creditor of the debt.

So, if she defaulted on a loan with ABC Auto loans and they sold or assigned the debt to XYZ Collections then both can be on her credit report.

I suggest you go to www.creditinfocenter.com and www.creditboards.com for info on cleaning up the reports. Much of it she can do her self. I am not sure paying someone to fix it for you is going to help. Most of the consolidation companies are owned by the very creditors she has.

[RobertClark]

Credit repair services are gimmicks and generally not worth the hassle of dealing with them. For the most part, they are owned by junk debt buyers and profit handsomely from providing a minimal amount, if any, real assistance to deal with the problem.

If you are serious about helping her consolidate the debt into a single payment, your only real choice is to go take out a loan and pay off the debts and have her make the loan payment to you each month to ensure that you don’t risk your credit for the sake of hers. Depending on how much damage has been done to her credit, you may be able to co-sign for a loan to consolidate the debts, but in the end, you’re still on the hook for the loan amount. If you take this road, I would gather her bills, call each of the creditors and negotiate a payoff amount - doing so in conjunction with a request for a ‘pay for removal’ may help salvage her credit (offer to pay the balance within 48 hours if they report the debt as paid on time and paid in full).

If you insist upon a firm to assist, I would recommend Lexington. They operate differently from other ‘repair services’ and can find a solution, but it will not be inexpensive nor a cure all.

Good Luck!

[Figment]

Cut her loose. It’ll take awhile but it can be resolved if you just let her face the music

[Gay State Conservative]

Although I’ve never needed one everything I’ve read strongly suggests that those outfits are,at best,useless...or worse.If things are that bad bankruptcy may be the answer.And then hope she learns a valuable lesson.

[hope]

BTW, I’m learning tough love on my kids..It’s hard but, some times they need to do this on their own.

[Vigilanteman]

A few of things to consider:

1. The mere threat of declaring bankruptcy (as long as that card hasn't been played in the last 10 years) will convince many creditors to settle for as little as 50, 40 or even 35 cents on the dollar. A good line is "I've saved $1000 and can use it either to pay creditors or pay for a bankruptcy filing, which will it be?"

2. Creditors will tell you that they will file a 1099 on any balance written off and it will be taxable income to you. They can do this. But if your daughter makes little, the 1099 income may mean little.

3. A straight bankruptcy will not result in a 1099 filing. Decent creditors know this and will often give you a year or even more with 0% interest for making regular payments. In many cases, this is actually better for you than a loan write-down.

4. VERY IMPORTANT: Insist that the creditor give you any offer you've agreed to in writing first. There are real sleeze-bag operators out there (Bank of America and Chase are two examples) who will tell you anything to get the payment and then conveniently forget or even give an altogether different version of what was agreed.

5. People can and do snap back from bankruptcy. It isn't as easy as the lawyers will tell you because they love making money doing the filings, but it is possible. You actually get inundated with credit card offers and offers for car loans and such after the bankruptcy is discharged. Burn them unless there is a no fee offer for a reasonable credit card to reestablish credit. Then use it sparingly and pay it off monthly.

6. Most of the auto loan offers are come-ons to get you into the dealership and sell you something you can't afford-- especially if they give you some code to enter to see how much you qualify to borrow. For the most part, its bullsh*t and useful only in picking dealers NOT to visit. Dealers who do this want to milk a customer who has recently gone though bankruptcy with a high interest 5-6 year loan because they know you can't do it again for 7-10 years. That is why there is such a push to get these offers in your mailbox within the first few months after the discharge.

   Give it at least two years and then go to reputable car dealers, not the ones who sent you the offer and got your name off the public filing. By this time, her credit score will be in the 680-720 range and you will actually get decent rates, maybe 3.5% or 4% from reputable dealers if you make a decent down payment.

   Better yet, if she doesn't need a car, give it well more than two years. Her credit score goes up automatically every few months as she pays off debt.

[siamesecats]

A very close friend of mine is currently using Christian Debit out of Florida (for what it’s worth). He is satisfied with the work they have done, and continue to do.

[siamesecats]

OOPS, meant Christian Debt.

[CSM]

Don’t use a credit repair service. First of all, this is something you can help her do herself. It is important that she fix this mess, it will give her the much needed motivation to not make the same choices again.

Second, most of them are scams that will take your “Fee” and then do nothing. There is no way to repair credit unless she was victimized by fraud. You can not remove any true event that has happened, i.e. late pays, write-offs, etc.

Go to www.daveramsey.com and check out his baby step system. She can fix this mess and she will be better off by doing the hard work herself, while you are her accountability partner.

[CSM]

One more thing. I don’t know where you are, but I’d wager that there is a 99% chance that you have a Financial Peace University within a few miles of your location. They are held at local churches and it would be a great thing for your daughter to attend.

It can be found at the same Dave site I just posted to you.