Posted on
September 17, 2009
at
5:07 am
Hello, what's stopping credit card payment have to do with debt settlement?
Posted on
September 17, 2009
at
5:13 am
If the consumer is not yet delinquent with his payments, or is not yet past due on most of his accounts, then the creditors would not negotiate with the debt settlement company--because they'd see it as not grounds for debt forgiveness..so stopping credit card payments makes sense if the consumer wants his debts (balance) to be cut to more orless half.
Posted on
September 17, 2009
at
5:14 am
Wouldn't stopping credit card payments hurt the consumer credit?
Posted on
September 17, 2009
at
5:34 am
If the consumer is knocking on debt settlement doors, it means that his credit is already damaged do to delayed or non-payments--but in cases wherein some of the accounts are not yet past due, stopping credit card payments would be advised..and the settlement company would explain how the credit is going to be--during and after settlement.
Posted on
September 17, 2009
at
5:52 am
About stopping credit card payment:If you qualify for the settlement program it means that youre already past due, your credit is already bad. To better understand it, here's a breakdown of the FICO score. See which segments are affected by debt settlement (account past due, has stopped paying the creditors and will continue to do so until enough amount has been saved..):-35% Payment History- 30% Amount Owed-15% Length of Credit History-10% New Credit-10% Types of Credit Used
Posted on
September 17, 2009
at
5:55 am
To add to that, a debt settlement appears on the credit report as "settled", "settled for less than the full balance", or "settled in full." From there, the consumer's credit should improve, it should be better than before he enrolled in the program. Stopping credit card payment could be alarming but it should work out in the end.
