Credit rating is all about managing debt intelligently. Although you may have a pile of loans to pay off, you can save credit rating from plummeting or even increase it if it has already touched bottom. The big question is how to do that? One simple technique of managing your debts is to consolidate them. In order to consolidate your debt, you must meet a debt settlement professional and prepare a list of all your outstanding debts. At this point, it is advisable that you have a word with your credit card companies to see if they can reduce the outstanding amount. Then, apply for a debt settlement loan wherein you can consolidate all your debts into a single loan. When this debt settlement loan is approved, your credit report will show that all other debts have been paid off and only one loan remains. This will leave you with a single payment each month rather than juggling with multiple payments. The credit rating will increase with time as you pay off your monthly payments regularly. As time goes by, the negative aspects of your credit report will diminish. Moreover, with decreasing principle on your loan, the credit rating will accelerate. Selecting a capable debt settlement professional will play a crucial role in approving the debt settlement loan. He will help you gain control of your finances by explaining you the entire procedure and framing a perfect strategy. Successfully implementing this strategy and making your payments on time will relieve you from enormous amount of mental pressure associated with debt. Along with efforts applied by you as well as the debt settlement professional, you should see a rise in your credit rating within the expected time.
If it were only that easy. If you're in the desperate situation described above (e.g. cards maxed out, hard to make min. payments, etc.), your credit score IS NOT what you should be worried about. At that point your credit is shot and you've got bigger problems to worry about. Besides, what are you going to do with credit in that situation anyway? Get another loan?! You can't make payments on the ones you have! Now, the suggestion is to contact a third party to have them ruin your credit for you (worse than it already is, if you can imagine that) and PAY THEM for the privilege?! Why not just heat your house by burning the money instead? At least then you'll get some (albeit fleeting) benefit from it. How 'bout a little reality check, first? If a bank or creditor "settles" for less than the full balance. That account is going to be closed and marked as such in your credit report. That says "this person couldn't pay the debt they ran up." Sure, it'll have a 0 balance after you pay it off, but it'll also have a negative mark so that's not going to help you much (in fact, it's most likely to bring the score down). Next, once you mention debt-settlement company you might as well have said bankruptcy. Both say "I'm in over my head." Now stuff happens. It's happened to me. Being over your head in debt is no fun, but if you're in that spot, you don't need to get into more debt! And you REALLY don't want to do it when you're such a bad risk that you'll have to borrow at a very high rate. All you're really doing is taking 10 years of payments and turning them into 20 years of payments. Bottom line, if you're in such a bad place as to think you need a debt settlement company, you might as well just call a bankruptcy attorney. Chances are, if you go to a debt settlement company, either they'll take your money and do nothing (probably the best case scenario) or they'll take your money, ruin your credit, and then leave you with an even larger debt (oh, but only one payment. One that you'll probably be making for the rest of your life). At least with bankruptcy, you'll be 100% out of debt (student loans and other non-dischargeable debts notwithstanding, of course). It'd be nice to see how this process REALLY works, and if you are even thinking about contacting a debt settlement company, you owe it to yourself and whatever money you have left to find out exactly what will happen to the accounts they claim they'll help with. Just remember, when you realize you're digging yourself into a hole, the first thing to do is STOP DIGGING! Not dig with a bigger shovel. Your credit score is just a number.
You have got to be kidding right? With a "debt settlement professional" credit will be jacked up for 7years after you finish making payments (if you ever finish) with bankruptcy businesses will be sending you credit offers in 2-3years. Why because you don't have any debt (supposedly). I know many people who started getting legit offers of credit months after they filed/discharged bankruptcy. look I never get into the debate of whether or not filinf bankruptcy is morally wrong. What I do say is that you owe it to yourself and those that depend on you to make the best decision for your survival that you can. Credit scores bounce back, mental and emtional truma take a little longer to bounce back from.
You have got to be kidding right? With a "debt settlement professional" credit will be jacked up for 7years after you finish making payments (if you ever finish) with bankruptcy businesses will be sending you credit offers in 2-3years. Why because you don't have any debt (supposedly). I know many people who started getting legit offers of credit months after they filed/discharged bankruptcy. look I never get into the debate of whether or not filing bankruptcy is morally wrong. What I do say is that you owe it to yourself and those that depend on you to make the best decision for your survival that you can. Credit scores bounce back, mental and emotional trauma take a little longer to bounce back from.
