Posted on
July 15, 2009
at
5:08 am
I've read in the news that credit card companies are now open to negotiations with regards to consumer debt. I would like for mine to be settled but I know nothing about it. Should I use a debt settlement company instead?
Posted on
July 15, 2009
at
5:12 am
There's nothing wrong with seeking the help of a debt settlement company, just make sure that you've checked the company's profile and reputation with The Association of Settlement Companies (TASC) website
www.tascsite.org and the Better Business Bureau (BBB) http://www.bbb.orgOr you can fill out one of the forms here at destroydebt.com and get matched up to the right company.
ck Rep Points:
Posted on
July 15, 2009
at
5:27 am
Should you use a debt settlement company? Why not, if you can qualify. Most debt settlement companies have a $10,000 debt requirement. Also, your account has to be past due for you to be accepted in their program.
Posted on
July 15, 2009
at
5:34 am
What the debt settlement company can do for you is negotiate the original amount of your debt to at least half in exchange for closing your account and marking it as “paid” or “settled” on your credit report. Another advantage of enrolling in a debt settlement company is their knowledge or relationship with the creditors. That plays a factor in the negotiation: inside tract into the creditors mind set/characteristics.
Posted on
July 15, 2009
at
7:07 am
Whether or not you should use a debt settlement company is your choice, but that is a very good point made above. Settlement companies, the good ones, will have a greater understanding of the internal policies of the creditors and/or third party collectors that you owe. In the end, they may be able to settle your debts for far lower than what you could potentially do negotiating on your own.
Posted on
July 15, 2009
at
8:43 pm
yes but how will it affect my credit?
ck Rep Points:
Posted on
July 16, 2009
at
1:09 am
Okay:
-35% of your credit score is determined by your payment history- 30% is by the amount owe-15% by the length of credit history-10% by new credit -and 10% by the types of credit you used Your accounts becoming past due affects the payment history segment of your credit score- until your debt is settled. It is ironic that the better your overall score is, the more severely affected it is going to be by the debt settlement process- but...if your score was already bad to begin with, then it can only go up after the settlement.
Posted on
July 16, 2009
at
2:28 am
so it won't be as bad as bankruptcy, right? i'm a little worried abt getting into settlement, to be honest, because i heard that it would really ruin your credit. i hope that's not true
Posted on
July 16, 2009
at
3:48 pm
It has a negative effect on your payment history, but on the bright side your debt to income ratio will improve as each account is settled. It is not as bad as bankruptcy if that is your main concern. Keep in mind that if you file Chapter 7, that stays on your credit report for 10 years and your public records for 20 years. A settlement stays on your credit report for 7 years from the date the account was settled, and does not appear on your public records at all.
Posted on
July 21, 2009
at
1:15 pm
Should I use a debt settlement company if they have only been in business for 2 years?
