Debt Relief Options - Is a Debt Settlement Worth Getting a Lower Credit Score?
Debt settlement is the process of eliminating a percentage of your debt.
When you are represented by a professional debt settlement company, they work with your creditors.
While a number of factors will be taken into consideration, you can easily see 50, 60, or even 70 percent of your credit card debt eliminated.
However there is a consequence.
That consequence is the low credit score you will get.
So is this trade off worth it? In most cases, yes.
Most debt-ridden consumers use debt settlement as one of their last resorts.
Typically, they will first try to get their creditors to agree to lower monthly payments and then they might consider debt consolidation.
When those two options do not work, debt settlement and bankruptcy remain.
Bankruptcy is not recommended because it will impact your credit score for seven years (seven long years).
With settlement, you will still get a lower credit score, but the impact won't be as long because it is only usually one or two years.
The only downside to debt settlement is that during those one or two years you might find it difficult to secure financing for a new home, car, or personal loan.
The upside is that it will be easier to get out of debt.
You now owe less money, which is easier to pay off.
The sooner you get out of debt, the sooner you can start practicing good spending habits.
For example, limit your unnecessary purchases, cut back on your phone or television packages, and so forth.
This extra money (once your debt is paid off) can help in emergencies so that you do not need to request financial assistance for a bank or lender for those two years.
If you like the sound of debt settlement or if you would like more information, visit the online website of a debt relief network.
These networks are organizations that work with different settlement and consolidation companies.
They regularly test and monitor them to ensure they are connecting you with a good and legitimate company, which can be hard to find yourself when doing nothing more than a standard internet search.
When you are represented by a professional debt settlement company, they work with your creditors.
While a number of factors will be taken into consideration, you can easily see 50, 60, or even 70 percent of your credit card debt eliminated.
However there is a consequence.
That consequence is the low credit score you will get.
So is this trade off worth it? In most cases, yes.
Most debt-ridden consumers use debt settlement as one of their last resorts.
Typically, they will first try to get their creditors to agree to lower monthly payments and then they might consider debt consolidation.
When those two options do not work, debt settlement and bankruptcy remain.
Bankruptcy is not recommended because it will impact your credit score for seven years (seven long years).
With settlement, you will still get a lower credit score, but the impact won't be as long because it is only usually one or two years.
The only downside to debt settlement is that during those one or two years you might find it difficult to secure financing for a new home, car, or personal loan.
The upside is that it will be easier to get out of debt.
You now owe less money, which is easier to pay off.
The sooner you get out of debt, the sooner you can start practicing good spending habits.
For example, limit your unnecessary purchases, cut back on your phone or television packages, and so forth.
This extra money (once your debt is paid off) can help in emergencies so that you do not need to request financial assistance for a bank or lender for those two years.
If you like the sound of debt settlement or if you would like more information, visit the online website of a debt relief network.
These networks are organizations that work with different settlement and consolidation companies.
They regularly test and monitor them to ensure they are connecting you with a good and legitimate company, which can be hard to find yourself when doing nothing more than a standard internet search.