Last summer, Equifax launched a new product aimed at helping people reduce their debt. This product is called Equifax Debt Wise, and it’s proving to be quite popular. To be sure, it’s a unique and interesting way to keep track of how much you owe while calculating how long it will take to pay it off. For people deeply in debt, this is a real boon. However, the service isn’t free. It comes with a price tag of $14.95 a month. This may not sound like much, but in this economy, it could be a big chunk of someone’s monthly budget. So, before you sign up, you need to make sure it’s worth it for you. Here are the facts you need to know before jumping on board with Debt Wise.

1.  It can help some people, but not everyone. People with no debt, one large debt, or only common debt like a mortgage and school loans will not benefit from the program.

2.  You’ll get four copies of your credit report when you sign up with Equifax Debt Wise. This is an excellent value, and makes the price of one month’s membership worth it for almost everyone, since you’d pay about $160 if you bought 4 reports individually. Plus, it’s always a good idea to see your credit report at least annually, so you can see if there are any mistakes there and to see where you currently stand with your creditors.

3.  You get a FICO score when you sign up. Again, this brings excellent value to the service, since you often have to pay separately to get that score. The FICO score is that magic score that lenders use to determine your creditworthiness for things like mortgages, loans, and credit cards, so it’s a good idea to know what yours is…..and work on raising it. Debt Wise can help you do this.

4.  The service provides $25,000 in free identity theft protection. That’s great if you’re worried about identity theft, and invaluable if you actually become a victim of it.

5.  The Equifax Debt Wise system tracks your progress as you pay down your debt, as long as you’re not tracking credit cards you’re currently using. It tracks payments on static debt and old debt. Still, it’s nice to be able to see on the computer screen just how close you are to reaching your goal of being debt free. It’s motivational.

So, for most people, Equifax Debt Wise can provide a very good value, at least for a month or two. You may decide you don’t need the service anymore after that, as you learn to track your debt on your own. For the perks you get when signing up, though, it’s well worth the price for a month or more. It’s a service that can really be useful to many people, at least for a little while. For that reason alone, it’s worth giving it a try.

This is the seventh installment in our credit & debt series. Be sure to check back for updates…

Filed under: Debt & Credit

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