Wednesday, January 1, 2014

Debt Settlement and Credit Repair




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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