Should I Keep Paying Lexington Law Firm to Repair My Credit?

“Dear Steve,

Ok, I guess I’ve been in the acceptance stage for a couple of months now but still feel overwhelmed in tackling my debt despite having done a lot of research. First, I am paying Lexington $80 per month to clean up my credit report. I have seen some improvement to my credit score (I’m almost up to 600), but I’m wondering if this is a wise investment of money in your opinion?

Also, I have been reading your ebook about getting out of debt and have started with the spreadsheet. But in everything I’ve read, I still don’t know what to do with my private student loans. I did the income-based plan with the Dept of Ed and am not behind. But I am in default on my private student loans and when I contacted the agency who has my loan, they wanted way more money than I can afford every month. They asked that I send them bank statements, pay stubs, and an income vs. outgoing statement. What can I do about this debt? It’s about $65,000 and I’m already paying on the federal student loans. I know there’s some rules about student loans and payments not being more than 20% of income. Do I have room for negotiation with them? I obviously don’t want to be sued (which they have threatened), but I also can’t offer very big monthly payments. What do you suggest?

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

What can you do about private student loans? I need to negotiate an affordable monthly payment far less than they are offering.

Sarah”

Dear Sarah,

I can’t see the Lexington thing being a good investment. Just follow this free guide to cleaning up your credit.

On the federal loans you are on the best program. Private student loans however have no options. Depending on what kind of other debt you have you might have to consider bankruptcy to clear your other obligations and make room for the private loan payment.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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Steve Rhode Debt Coach and Author
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

12 thoughts on “Should I Keep Paying Lexington Law Firm to Repair My Credit?”

  1. Dear Steve, 
    I filled for bankruptcy and it was discharged soon after. It is now four years later and I really would like to purchase a home. I’m not sure how to make this dream into a reality. Most banks would never allow me to get a loan and without one I don’t know how I could purchase a home.   The way I see it is that unless my credit is better and fixed up then theres now way possible for me to buy a house. Should I try a credit repair company, like sky blue or Lexington law? Looking forward to your response, thank you for your time. 

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  2. i would like to opt out of Lexington law ;aw i have been in the program paying 59.00 each month and seem to be going nowhere how do i get my money back
     

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