It is not a secret that a large section of the population in the country is living their life with the constant fear of their debts. Why do they take these debts? They take them to fulfill their basic needs, dreams, and desires.
But what they forget is that as easy as it seems to take a loan, it is daunting to pay these debts. With a tight budget every month, there is a high probability that you would not be able to pay the debt, and it would keep piling up along with the chunky interest.
Dealing with debt can be physically and mentally daunting, as once you fall prey of the debts, you will feel like you can never overcome the problem. But the good news is that the US government is coming up with debt relief programs which act as an excellent financial aid to the citizens who are drowning in debt.
Read this article to know more about debts and debt relief programs.
What kinds of debts do people take?
Most people fall victims of debts because of taking the following loans:
Car loans
Education debt
Credit card debts
House loans
What are the debt management options you can opt?
Debt Settlement
In this, you can hire a professional debt settlement firm or a lawyer and hope that the bank or the creditor reduces your total amount of debt. While the price is negotiated, you will have to set aside a certain amount of fund every month and pay it at once when both the parties have agreed.
Debt Consolidation
Debt consolidation is often done once your debt settlement is successful. A loan is taken to pay off the new reduced loan amount. This loan is at a low-interest level, which makes it possible for the person in debt to pay off his debts.
Bankruptcy
This is the last resort a person can opt for. When you choose this option, you officially declare that you are incapable of paying your loans. It is a long process and has a long-term negative impact on your credit score.
How do debt relief programs help?
Debt relief programs are the best way to overcome your debts. Debt relief programs go hand in hand with credit counseling programs. When you opt for this option, you get financial advice and counseling from the finance experts. They also make sure that your debt amount is negotiated and brought down drastically. Not just that, they help you sanction a loan at a low-interest rate so that you can once and for all get done with your debt.
The best way to manage your debts is to find a good debt management firm and work together to make yourself debt free.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.