| As the realization of the credit crunch exponentially | | | | of that debt and have it reported as being paid in full, |
| impacts more and more people, individuals are | | | | you would feel better, right? |
| bombarded with offers to reduce debt or | | | | Secondly, if you have considered credit counseling |
| recommendations to file bankruptcy. Although, these | | | | a.k.a. debt management, a notation will be made on |
| offers sound great, and being in the debt settlement | | | | your credit report which will remain for 7 years. |
| industry my experience has shown me they do work | | | | Creditors and lenders do look negatively on these |
| for most if not all people that follow through with the | | | | programs; in fact, the considerations weigh the same |
| program. The most frequent question that is asked is | | | | as bankruptcy in most cases, especially when financing |
| how are credit scores affected while enrolled in a debt | | | | automobiles and real estate. |
| management program. | | | | The factors that do affect a person during a debt |
| Let me first start off by stating that any and every | | | | settlement program are late payments; due to the fact |
| debt relief or management program will negatively | | | | that creditors will only settle for a full amount, the time |
| affect your score. In fact, anything short of paying off | | | | between negotiation and the "nesting" period as funds |
| debt in a timely manner will negatively affect ones | | | | accrue in the debtors account. The positive factors for |
| credit score. Also, this information is as accurate as | | | | debt settlement are (a.) the speed in which a person is |
| possible in a general nature. Every consumer has | | | | debt free and (b.) accounts are reported as being paid |
| unique circumstances that could vary results. Now, that | | | | in full. |
| "disclaimer" is out of the way, let's get to the facts. | | | | Moreover, doing nothing can hurt you even worse. |
| My first point: if the debt that you are considering is | | | | Most likely, if you are reading this, you debt to income |
| already with collection agencies, collection attorneys, or | | | | ratio is too high, or you are struggling with high interest |
| a debt buyer and is being reported as "charged off"; | | | | payments. If you are considering debt settlement; rest |
| then debt settlement is going to be a respectable and | | | | assured, your credit will not be "ruined" although you |
| intelligent decision. Once that debt was reported as | | | | may initially notice a drop in your credit score. As the |
| being a charge off it cannot hurt your credit more than | | | | saying goes, "sometimes you have to take one step |
| it already has. Additionally, paying the debt in full to the | | | | back to take ten steps forward." As each account is |
| initial creditor will be literally throwing your hard-earned | | | | settled your credit score will increase and your total |
| money away. So, if you were to pay back a fraction | | | | debt will soon disappear. |