Americans have more debt than ever before. A recent study shows that Americans, as a whole, are saving money at a lower rate than at any time since the Great Depression. In fact, the savings rate is actually negative, and that means that people are spending more money than they are earning. The problem with doing so is that it eventually catches up to you. You can either pay your bills or watch helplessly as the negative entries begin to pile up on your credit report.

Realizing that many Americans have found themselves buried under a pile of debt, and worse, having a credit report that accurately reflects that problem, a number of resourceful and unscrupulous companies have started companies that promise to "fix bad credit." Their ads are on television, telephone poles and even in our inboxes in the form of spam. The promises are always the same; the companies offer, for a fee, to wipe out judgements, bankruptcies, tax liens, late payments and any other "black marks" on a consumers credit report, all for a fee.

There's just one problem – they cannot do it. There just isn't any way to legally remove accurate information from a credit report. These companies are promising the sun and the moon, collecting their fees and doing nothing. As a result of thousands of complaints, the Federal Trade Commission has been cracking down on these credit repair companies, but the twenty or so firms that the agency has shut down so far only scratches the surface. Hundreds of these companies remain in business, and consumers should be aware of these agencies that promise more than they can deliver.

While there are legitimate counseling firms that can assist you with debt problems, consumers should avoid companies that promise to "fix" a bad credit report by suggesting any of the following:

# That you dispute every single item on your credit report. This just clogs up the system, but sooner or later, the information will be verified.

# That you can obtain a new "credit identity" by obtaining an Employer Identification Number. This doesn't work; the credit bureaus will eventually figure out that the two identities are the same.

# Urging you not to pay your debts because of an alleged Federal law that makes extending credit illegal..

The only way to "fix" bad credit is to pay your bills, pay them on time, and wait. It takes years to get into credit trouble and it takes years to get out of credit trouble. There is no quick fix, no matter who promises you otherwise. Instead of paying someone to "fix" your credit, save the money and use it to pay down your debt.

About the Author:

©Copyright 2006 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com, a site devoted to debt consolidation and credit counseling.