Credit repair, debt consolidation, debt relief, and credit counseling are all options to help get you back on track if you’ve fallen into debt. Some options are better suited to your situation than others. A Better Business Bureau investigator says you should do some research to find out which one is right for you.
Although medical debt is not supposed to be reported to the three credit bureaus, the debt is sometimes sold to a collection agency and then reported. Don O’Brien, BBB Investigator:
Of the other solutions, he says, credit counseling is the most comprehensive. Debt relief or settlement companies provide assistance by renegotiating the debt so that the person does not owe as much. Debt consolidation companies offer loans to pay off debts all at once.
And credit repair companies promise to clean up credit reports for a fee, but the chances of them being able to do anything account owners couldn’t on their own are slim. You have the right to correct inaccurate information in your file, but no one can delete accurate negative information. Only time and conscientious payments will truly repair the credit report.