Economic Conversation

Foreclosure credit repair is something that many companies are attempting to offer during the current mortgage crisis.  With so many people going through the process of foreclosure, getting credit counseling about this issue may help you lessen the damage that is going to be done or has already been done.  For those of you that do not know, going through a foreclosure is one of the worst things you can do financially.  Your mortgage payment should be the first thing you pay every single month.  Any credit card debt, student loans or any other type of debt should come after your mortgage.

I have actually heard people claim that they are going to try to pay off credit card debt and not worry about their mortgage payment.  NO!  This is one of the worst things you can do.  If anything, let the credit cards wait and make sure to pay off your mortgage.  If you pay off $75,000 in credit card debt and get foreclosed upon, you basically wasted that entire $75,000 because you are filing bankruptcy anyway.  If that was your plan, you might as well put all your money in a can and bury somewhere safe so you can dig it up after bankruptcy and have some money.

Overall, I would ask many questions about foreclosure credit repair if they claim to be able to fix your credit.  The best thing you can do is educate yourself on the subject and make sure you realize that it takes a lot of work and energy to fix any type of credit problems, no less a foreclosure.  There are many resources available online and I would suggest that you get as much information at possible before paying anyone to fix your credit.