Free Debt Management Advice for Living on a Budget (cont.)
Contributed by Lisa Marie
But the most important part of this free debt management advice is that creditors have ways of speaking to each other without saying anything illegal. How they do this is by writing a note in the comment column of your credit report, usually it reads something like "Under Credit Counseling" or "Debt Management Service". This is your current creditors way of telling potential new creditors that you have had some financial issues in the past and needed some help in paying your bills.
If you were a potential new creditor, would you like to see this on someone's credit report? I sure wouldn't. To me, it says that this person can't pay their bills now, why on earth should I extend them credit? It's a big possibility that they could put my offer of credit under this service and I would lose money.
The conclusion of my free debt management advice...
Seek alternate routes. If you own a home, consider a home equity loan. This way you can deduct the interest that you pay on your taxes at the end of the year.
