Can misreported credit lead to need for debt relief?

Consumers who are struggling with large amounts of credit card debt and other outstanding balances have enough on their plates without worrying about the state of their credit reports when mistaken entries wind up there.

In many cases, consumers might have inaccurate information on their credit reports, which can have a negative impact on their financial standing, as a result of what are known as "mixed files," according to a report from the Columbus Dispatch. For instance, consumers may have data for not only themselves, but also family members, neighbors, consumers with similar information such as names or Social Security numbers, and even those with no similarities, on their credit reports.

Further, it can be difficult to clear these up because the burden of proof that a person is not responsible for the account on their credit report is on the consumer, the report said. Therefore, it can often be difficult to compile evidence of this.

Mistaken entries on a credit report can lead to many financial hardships, including the necessity for debt relief if there is an account they just can't clear from their records.