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| ==Credit Management==
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| For those who need assitance managing their credit there are a variety of choices and options out there. In an article by Hispanic magazine, financial author Julie Stav explains what a FICO score is, how credit bureaus calculate it, and steps on ways to improve your score. An article by U.S. News and World Report states the following steps to keep this score manageable:
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| 1.) Pay bills on time.
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| 2.) Pay down debt.
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| 3.) Maintain long-term credit relationships.
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| 4.) Do not apply for too many loans.
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| A great self-help guide to consider is Repair Your Own Credit which instructs debtors how to repair their credit and how to reestablish credit. It also lists organizations that will either give people free assistance or charge a very low cost to help someone stay out of debt. In NEA Today, they also refer to some credit management agencies such as Equifax as well as warn people about credit repair clinic rip-offs saying they do not do anything that you cannot do yourself. The counselors at Credit Union Magazine suggest that bankruptcy be the last resort in certain circumstances.
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| == Debt Consolidation == | | == Debt Consolidation == |
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| Again, bankruptcy needs to be considered as the very last option to debt relief. | | Again, bankruptcy needs to be considered as the very last option to debt relief. |
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| == Debt Management ==
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| Credit counseling and debt management agencies give professional help to individuals who need assistance paying off debts. These agencies look at the client's debts, listen to needs, make recommendations and create budgets. These companies have received bad press in the past, do research before selecting one. Make sure it is accredited with an institution, such as the Better Business Bureau. A debtor must also make sure to look at state laws, so that he/she is not overcharged for financial help.
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| The steps most of these agencies take to help debtors eliminate debt are:
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| 1.) They help debtors to assess his/her debt situation.
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| 2.) Avoiding overspending and handling existing debts are other areas that consultants help debtors with.
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| 3.) The final steps are helping the client to build and maintain good credit.
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| Most financial advisors agree that the most important step a person must take before seeking counsel is to change his/her money management skills. The debtor must change the way he thinks. M
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