When you are trying to repair your credit, one of the first
things that you should try is to get your creditors to agree to a debt
settlement. What is a debt
settlement? Basically, you will call
your creditor and let them know that you want to pay off the account and ask
them what the lowest number they will agree to.
Most of your debt that you have accumulated is in interest fees and late
fees, so a lot of them will think about this and agree to a lower payment
amount than what shows on your statement.
If you have collection accounts on your credit report, be
sure they are willing to remove the collection in return for your negotiated
payoff. Otherwise, paying off a collection could hurt your credit even more. A
good credit repair company would be a great help with this.
Not all companies will
agree to debt settlement, but when you can find one who will, it can go a long
way to repair your credit. Be honest
with the company and tell them what you have to offer. If it is acceptable to them, the settlement
of the debt will be finalized and you will be on your way toward credit repair.
There are other
companies besides credit card companies who will agree to debt
settlements. One of the biggest reasons
that people get into credit problems is due to overly huge medical bills. These cannot be helped oftentimes and they
can stack up very quickly causing huge blemishes on your credit report.
Believe it or not, you
can make a debt settlement agreement with the medical companies that can go a
long way to repair your credit. Check
with the hospital to see if they have any special programs for people who are
having financial difficulties because of an illness that isn’t covered by
insurance or for people who don’t have insurance. Almost all medical providers realize that
medical care is expensive, so if you show them your total financial picture and
at least try to make some type of settlement on your debt, they will be willing
to accept it. Keep in mind that some
won’t, but there’s really no harm in trying.
Using debt settlement
agreements as a way to repair your credit is just a smart way to go. Make the phone calls and be prepared to
negotiate. Many people will work with
you if you show a good faith gesture to try.
Expert
Credit Consultants, LLC specializes in establishing business credit and funding
using the exclusive Business Credit and Finance Suite as well as credit
restoration and optimization. www.ExpertCreditConsultants.com.
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