Free Debt Management Management Advice for Families on a Fixed Income (cont.)
Contributed by Lisa Marie
So it still sounds good, doesn't it? It's better than what's going on now, right? Actually, it's really not.
you see, as soon as the debt management services "negotiate" you interest and payment for you, your creditors put up a small "red flag" to worn future creditors that you had problems paying your bills in the past. They do this by putting a note on your credit report under the "comments" section that may say something like- "Under Debt Management Services" or "Paying Through Credit Counseling".
This is perfectly legal because your creditors are not lying, but what they are actually doing is telling potential future creditors that you had difficulties paying your bills, so why on earth would someone extend to you a good interest rate, or even credit at all?
The end of my free debt management advice
Do your homework. Talk to financial institutions about these services before you go ahead with one. Most banks, credit unions and mortgage companies would be happy to give you some free advice, and maybe can even help you out with a loan program that will not destroy your credit.
