What Kind of Credit Card Debt Reduction Could You Achieve Through Settlement Negotiation?
Any prediction of the settlement that may be eventually granted through a credit card debt reduction package will ebb and flow according to a variety of different factors.
The borrower's history of repayment will be very carefully examined by both the settlement professionals and the account managers employed by the banks, although the interpretations of the results may be different than most Americans would presume.
Now that the current generation of consumers has been trained since infancy to equate top FICO and Beacon ratings with almost magical abilities - evading the normal rules and restrictions governing loan applications, expecting creditors to throw themselves at the feet of scores surpassing seven hundred and fifty points - the same Pavlovian response to credit bureau evaluations dims the hopes of borrowers whose sagging finances forced downwards their ratings through thirty and sixty day lates.
We don't wish to down play the increasingly vital status that credit scores hold for residents of the United States.
The FICO and Beacon algorithms have attained a troubling supremacy for not just the availability of forthcoming credit opportunities but such disparate areas of life as job prospects or security clearances.
However, in a twisted bit of economic absurdity, a credit rating bruised and beaten from relatively recent lapsed bill payments will be of unquestioned benefit to the settlement negotiation proceedings.
This comes as a staggering relief to the most desperate of debtors, many of whom had long ago given up realistic hopes of ever satisfying their outstanding balances, continuing to investigate debt relief alternatives through dim momentum, but credit card debt reduction through lender forgiveness in large part demands a comfortably tattered borrowing history.
If you think about the underlying reasons behind just why the corporations give consent to credit card debt reduction, then the importance of middling FICO numbers should come as something less than a surprise.
After all, if the consumers had been regularly meeting their minimum bill statements like clockwork before suddenly deciding out of the blue to announce they no longer wish to owe quite so much money, the lending representatives would be significantly less likely to shrug their shoulders and ask how much the borrowers would like to repay.
A recognizable pattern of obligations unmet documented through the incontrovertible testimony of the three credit bureaus carries more weight than even the fiercest professional settlement negotiation team when bluffing one's way towards a hefty credit card debt reduction.
Now, the last thing we'd wish is for borrowers to take the most superficial readings of this information at face value and rush out to apply for every gas card or payday loan opportunity in the hopes of spending through whichever credit alternatives may yet exist - and defiantly resisting any plans to repay dollar one - so that their credit ratings may fall even further behind, inspiring even more impressive credit card debt reduction totals.
In all actuality, it should not take the full force of the lenders' corporate legal counsel to suggest that consciously borrowing funds with no evident intention of compensating the lenders would be more accurately deemed fraud than some sort of appreciable debt management stratagem.
Attorneys assisting in the preparation of bankruptcy documents usually ask that their clients wait at least six months (and, ideally, a full year) from the last recorded account activity before filing their paperwork to avoid arousing suspicions, and, when begging credit card debt reduction, the lenders should be approached with even more caution than the court trustees.
The borrower's history of repayment will be very carefully examined by both the settlement professionals and the account managers employed by the banks, although the interpretations of the results may be different than most Americans would presume.
Now that the current generation of consumers has been trained since infancy to equate top FICO and Beacon ratings with almost magical abilities - evading the normal rules and restrictions governing loan applications, expecting creditors to throw themselves at the feet of scores surpassing seven hundred and fifty points - the same Pavlovian response to credit bureau evaluations dims the hopes of borrowers whose sagging finances forced downwards their ratings through thirty and sixty day lates.
We don't wish to down play the increasingly vital status that credit scores hold for residents of the United States.
The FICO and Beacon algorithms have attained a troubling supremacy for not just the availability of forthcoming credit opportunities but such disparate areas of life as job prospects or security clearances.
However, in a twisted bit of economic absurdity, a credit rating bruised and beaten from relatively recent lapsed bill payments will be of unquestioned benefit to the settlement negotiation proceedings.
This comes as a staggering relief to the most desperate of debtors, many of whom had long ago given up realistic hopes of ever satisfying their outstanding balances, continuing to investigate debt relief alternatives through dim momentum, but credit card debt reduction through lender forgiveness in large part demands a comfortably tattered borrowing history.
If you think about the underlying reasons behind just why the corporations give consent to credit card debt reduction, then the importance of middling FICO numbers should come as something less than a surprise.
After all, if the consumers had been regularly meeting their minimum bill statements like clockwork before suddenly deciding out of the blue to announce they no longer wish to owe quite so much money, the lending representatives would be significantly less likely to shrug their shoulders and ask how much the borrowers would like to repay.
A recognizable pattern of obligations unmet documented through the incontrovertible testimony of the three credit bureaus carries more weight than even the fiercest professional settlement negotiation team when bluffing one's way towards a hefty credit card debt reduction.
Now, the last thing we'd wish is for borrowers to take the most superficial readings of this information at face value and rush out to apply for every gas card or payday loan opportunity in the hopes of spending through whichever credit alternatives may yet exist - and defiantly resisting any plans to repay dollar one - so that their credit ratings may fall even further behind, inspiring even more impressive credit card debt reduction totals.
In all actuality, it should not take the full force of the lenders' corporate legal counsel to suggest that consciously borrowing funds with no evident intention of compensating the lenders would be more accurately deemed fraud than some sort of appreciable debt management stratagem.
Attorneys assisting in the preparation of bankruptcy documents usually ask that their clients wait at least six months (and, ideally, a full year) from the last recorded account activity before filing their paperwork to avoid arousing suspicions, and, when begging credit card debt reduction, the lenders should be approached with even more caution than the court trustees.