3 Reasons Why ‘Self-Help” is the Best Way to Tackle Debt and Credit Issues

Do it Yourself 3 Reasons Why ‘Self Help” is the Best Way to Tackle Debt and Credit Issues

As a bankruptcy and foreclosure survivor, after gaining 20 plus years of experience with credit and lending, and after speaking to numerous and credible consumer debt settlement and credit experts, we all agree; “self-help is the best way for any amateur consumer to tackle their credit and debt issues.

Amazingly enough, there are many personal finance bloggers and others on the “interwebs” that espouse the views that using credit counseling agencies, debt consolidation loans, and debt settlement companies, are the best course of action to take when tackling debt issues.  As for credit and that awesome oxymoron of a term called “credit repair”, everybody and their brother has an opinion, view, or some level of claimed expertise to want to write about it.  Below, I give you 3 powerful and straight to the point reasons why “self-help” is the best way to tackle debt and credit issues!

Reason #1: The Federal Trade Commission (FTC) Says So  

The fact is there’s no quick fix for creditworthiness or getting yourself out of debt! You can improve your credit and finances yourself, but it takes time and a conscious effort to gain a little know-how!  When it comes to credit repair, the FTC says to help yourself and provides you with a simple step by step process on how to dispute credit errors.

In fact, in my free Better Credit Blueprint Lecture series, I explain why, with a little personalization, the only dispute letter I use to correct errors and inaccuracies on my personal credit report is the one shown on the FTC’s website!

When it comes to being Knee deep in debt, the first advice the FTC gives consumer is about “self-help”.  Yes, the FTC also lists other debt relief services available to you, but the fact is that you should attempt to settle your debts on your own first!  For any blogger or consumer who disagrees, please listen to these public service announcements from the FTC and then continue reading:

Reason #2: Maximizes the Power of Your Money

The Federal Trade Commission (FTC) says do yourself a favor and save some money too by tackling your debt and credit issues yourself!  Again, all you need is time and a conscious effort to gain a little know-how!  When it comes to credit repair, the only reasons you would pay anyone to correct errors and inaccuracies in your credit report are; you don’t have the time and you do not want to put forth the conscious effort it will take to gain the know-how!

And if that’s the case, to that I say; really?  You don’t have the time to make sure that your economic reputation and what is being said about you is correct?  Then read this previous blog post titled “What Does Your “Credit” Resume Say About You?” and then answer that question again.  Hell, the Better Credit Blueprint Lecture Series is FREE and proven to help you become a better guardian of your economic reputation, so there’s your “know-how”.  Just make the conscious effort to watch it!

Reason #3:  Insight and Control of the Process!

Charles Phelan, noted consumer debt settlement expert and creator of Zip Debt – a “self-help” guide to settling debt and avoiding bankruptcy, wrote in his special report about settling debt yourself that a frequent complaint of folks who dropped out of credit counseling programs was they had little, or no insight, into what the agency was doing on their behalf and they had virtually no control over the process.

Why do you think Credit Counseling is the most touted way to handle debt settlement by the banks themselves?  The answer is; since the credit counselor is only negotiating the terms, full-repayment is still being made!  If this is all that is happening, again I ask; do you have the time and can you make the conscious effort to gain the know-how you need to do this for yourself? Of course you can!

The same is true with a debt settlement company.  Why would you pay for any service to settle your debt when with a conscious effort and a little know-how, you can be in control of the process and use 100% of your available funds to eliminate that debt instead of paying unnecessary fees.

What about your credit rating?  Think a credit counselor or a debt settlement company is concerned with asking for a favorable credit rating on your behalf?  Not a chance, which is why I wrote my special report “How Credit Card Debt Settlement Affects Your Credit Report and What You Can Do About It”.  I wrote this eBook to let you, the amateur consumer, know that if you don’t ask, you won’t get, and credit counselors or a debt settlement company will definitely not ask, so they definitely won’t get!

The One Argument for Outside Help

At the end of the day, what there can be no doubt about is this:  there is a tremendous need for solid consumer education!  Yet, Who Can You Trust When Taking Credit and Financial Advice?  Check out this previous post to read my opinion on this topic.  So the only argument you can have against not attempting do-it-yourself debt settlement or correcting errors in your credit report yourself is this; you don’t have the time or you don’t want to make the conscious effort it will take to gain a little know-how!

I would love to hear your take on this subject and the only way we can engage is for you to leave a comment below icon smile 3 Reasons Why ‘Self Help” is the Best Way to Tackle Debt and Credit Issues



Comments

  1. Matt Withers says:

    I think sorting things out youself also helps your resolve too. If you have to dig your way back out of a hole you made, it’s hard work. In my case looking at taking on debt now makes me think, “how hard is this going to be to pay off?” rather than, “Oooh! I could have that *bright new shiny thing* right now!”

    The one thing I would partially disagree with is about consolidating debt. Potentially it is a very useful tool if you have the discipline to finish with the lines of credit that it frees up thus not making your situation worse, unfortunately many people don’t have that though.

    • I agree with your comment on gaining more resolve by being so involved in the process. You mentioned the key point when you used the word “discipline” when it comes to this particular option.

      And even though obtaining a debt consolidation loan might be a viable option for some when dealing with debt, you need to research its impact on your specific situation before determining whether it’s the right option!

      Thanks for the insightful comment Matt!

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