There are both reputable and nonreputable sources of help, so be careful. If you see an advertisement that says, “You can erase your bad credit history!,” don’t “bite.” Be careful of agencies that just want to make you a loan as well.
You cannot erase a bad credit history. But you can get back on track, with the help of an accredited credit counseling agency. Check the Yellow Pages of your telephone book under “Credit and Debt Counseling Services.” Make sure the agency you deal with is accredited and preferably a member of the National Foundation for Credit Counseling (NFCC). Some states license credit counseling agencies, so inquire about this also. A state's attorney general's office and/or a state commerce department Web site are good places to make these inquiries through.
To find the NFCC-accredited agency nearest you, call 1-800-388-2227, or visit the NFCC Web site at www.nfcc.org. These are typically called Consumer Credit Counseling Service (CCCS) offices, and they work with creditors on your behalf to negotiate restructured payments. They also examine your income and expenses and help you establish a spending plan that is right for you.
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