If you still have doubts about what a credit repair company is and how it works, I recommend you read the full article, as there are many myths about how these types of companies operate. In addition, this information could be very useful if you have problems with your credit cards and are looking for a solution to settle your debts.
Credit repair companies arrive in Mexico
It seems that these types of companies are new and little is known about them. They really began to have a presence in our country from 2009, years in which Solve your Debt began operations. That’s right, we were the first.
The business model comes from the United States and is called “Settle Debts”, which translates as “debt negotiation.” In both countries a credit repair company works in a similar way, excluding points that depend on local legislation.
What is a credit repair company and how does it work?
They are also known as debt repairers, the main function is to help people who are no longer able to pay one or more bank accounts or with certain financial entities where they can negotiate. This is achieved without the need for the client to request a loan to settle, since they take care of their own resources.
A customer-made savings plan is made to begin with your contributions to an account that is uniquely yours. While saving, the negotiations run, and as soon as you have the best discount that matches the accumulated savings, then the debt is settled.
In our case, we negotiate with each of the institutions (usually banks) to achieve a discount of up to 70% of the total of each of the debts. These discounts do not depend entirely on the repair company but on the lender (banks) so it can vary from one to another.
What debts are candidates for a credit repair company?
Not all debts are negotiable, it is a very important point to touch. In the case of Solve your Debt, the ideal characteristics for negotiation are:
- The total debt must be greater than $ 35,000 pesos.
- You must have late payments.
- The debt must come from some institution with which we negotiate.
Enter the repair company or do it on your own?
Although there are people who prefer to pay their debts on their own, when there are high amounts, the results are not guaranteed.
Among thousands of stories that our clients have told us, there are several that prove that when they tried to do it themselves, they discovered that the lack of information and experience was what did not allow them to conclude their objective.
The advantages of entering a credit repair company (in this case Solve your Debt):
- You receive personalized financial guidance.
- We generate a custom plan.
- We negotiate your debt getting the highest possible discount (this depends on the institution to which it is owed).
- You will take the first step to clean up your bureau.
When you do it on your own
- It is easy to get confused.
- Lack of information or financial culture can affect the process.
- The negotiation process must be well known.
- Collection calls continue.