Using a debt repair company to resolve your financial difficulties can be an attractive option for some people. Unfortunately, there are many companies which could actually make your financial problems worse. Before getting involved with a credit repair provider it’s important to consider the alternative options. It’s actually possible to do take control of your own debt problems and take steps to improve your financial ratings without turning to a credit repair organization. Working with a counselling agency is often a better way to get your finances in order.


If you have spiralling debts and problems getting credit approved, there are no shortcuts or magic solutions. Unfortunately, some credit repair companies take advantage of vulnerable people facing financial problems. The following are warning signs that a company may be using unethical practices.

1)      It sounds too good to be true.

Scam companies often make outrageous claims that they can fix your problems overnight. They may make claims that they can delete information from your credit rating file. The only time a financial report can be amended is if the information is inaccurate, and you can write to agencies to correct this yourself. Any company making claims which sound too good to be true should be avoided.


2)      They ask for fees in advance.

Reputable repair companies charge for their services after they have taken steps to improve your financial position. A good company will explain their fees and charges clearly, and won’t ask for payments up front.


3)      They offer you loans or other financial products.

Loans to consolidate debts can be a sensible way to take control of your finances, but beware companies which are quick to offer this solution. A further loan should be part of a detailed plan to balance your income and outgoings. A company will earn commission for arranging a loan, and this may be their only motivation for suggesting it.


4)      They suggest applying for credit with a new identity.

Any suggestion that you attempt to apply for credit with a new identity should set alarm bells ringing. This is the worst kind of scam you can come across. Some companies will suggest applications using different social security numbers. These methods are fraudulent, and you could end up in deep trouble if you apply for loans of any kind using anything other than accurate and true information.


5)      They offer quick solutions with little information.

Credit consolidation and removal can be a long process, and there are no quick solutions. It’s important to understand why you got into financial difficulties in the first place, and a good service will help you to do this. Many of the steps you need to take to get your finances in order can be done yourself, and a credit repair service should act as a guide in the process.


A credit counselling agency may be a better solution to your debt problems than a credit repair company. The real solution to financial problems is for a professional to offer objective advice about budgeting and managing debt. A plan taking account of your income and outgoings is often the best path to solving financial difficulties.