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Dangerous Credit Quick Fixes

Quick Fixes

Beware of companies or services that promise to fix your credit quickly. They can be dishonest and expensive. No one can speed up the process. The only solution for credit problems is to pay your debts on time.

Debt Restructuring

Never sign a contract or other "credit payment plan agreement" except with a reliable counseling service, which is usually a nonprofit. Be careful about agreeing to "debt restructuring plans." Their plans may lower your monthly payments but they may extend the length of time it will take to pay off all of your debts. Your total debt amount can grow from additional charges. Many people get deeper into debt after restructuring because they didn't understand the terms of the debt consolidation agreement.

Credit Fraud

Do not work with any agency that offers to change your Social Security number to get a new credit identity. Changing your Social Security number to avoid debt is fraud and a federal crime. Any company that suggests this is doing an illegal activity. You could be arrested for following the company's advice. If a company offers to change your Social Security number, report it immediately to the Federal Trade Commission and local consumer agencies.

Here are some good ideas:

  • If you are deep in debt and behind on your bills, you might need to get the help of a credit counseling service. The National Foundation for Credit Counseling (NFCC) is a good place to start. Credit counseling programs (also called “debt consolidation programs”) do not involve borrowing any money. You work with a counselor to set up a plan to pay off your debts and to help you negotiate with creditors.
  • There is a lot to watch out for with debt consolidation programs. You should make sure you find a trustworthy firm (not-for-profit or for-profit) that specialized in debt counseling. You generally want to avoid firms that offer loans as part of the service, unless you specifically want a debt consolidation loan (see Debt consolidation loans for more information). Remember, debt consolidation loans and debt consolidation programs are two separate things.
Remember: Just because a company is a non-profit, it doesn’t mean you’re in the clear. Some of the dangerous organizations operate as non-profits too.