It is very crucial to repair credit with debt settlement. Most consumers don't understand why. The biggest issue that i hear from my valued clients is: "If I negotiate my financial obligations with my creditors, I am afraid that my credit rating could get destroyed".
I know. The truth is, if you repair your credit with debt settlement simultaneously, your credit rating will only wind up being temporarily afflicted, definitely not messed up. A top quality debt negotiation company that offers credit repair with debt settlement together with their programs should in fact boost your credit - in many cases much better than it is now.
Besides, assuming you have a lot of personal debt, your credit score is already adversely affected - even if you make your monthly payments when they're due. Regardless of whether it's correct or not, creditors feel that if a debtor has a lot of credit card debt, they are experiencing finance problems. Thus, they are too great a financial risk.
Hence, the more credit card debt you have, the less your credit rating will be.
To conserve the Most Amount of Money, Focus on the Big Picture
I strongly suggest for you to prioritize your situation. Your primary concentration really should be on getting out of debt.
I have a question for you. Which of these would you go for: a good credit score today and be weighed down in debt for many years, or become completely debt-free and have a temporary low credit rating? Do not say you would like both good credit and become free of debt because the fact is that, that's not feasible - yet.
In the meantime, do not be concerned about your credit rating. Why would you want to have good credit at that point anyway? So you can add a lot more debt and lead to digging yourself in a deeper pit that you might not be able to get free from?
Every time a lender reviews an applicant's credit history, approximately 80% of the weight of his/her decision for loan approval is placed on the most recent twenty-four months of payment background. Not much emphasis is placed on payment history older than two years. This is why your credit rating is going to be only briefly afflicted with debt settlement.
Credit ratings aren't etched in stone. There are several secrets and techniques that may be carried out to raise your credit rating.
When you're Free of Debt, Your Credit Rating Will Increase!
Compare having too much credit card debt to filling a balloon with water - If you put a tiny bit of water inside the balloon, no damage will be done. However, if you put too much water in the balloon, it is going to burst, and as a result, the balloon will burst.
With credit card debt negotiation, we're relieving the water from the balloon - one account at a time. As soon as your debt is gone, your credit score can begin to go up. After that an emphasis can be put on strategies that will increase your credit score.
Can you understand why it's important to repair credit with debt settlement? Now that you've got a second shot at a fresh beginning, it is simply a matter of time before you posses superb credit!
Debt Free Solutions is a financial consulting company that assists Americans across the U.S. to eliminate their credit card and other unsecured debt (e.g. medical bills, collection accounts).
We utilize various programs and strategies to assist them to get rid of their debt in the quickest, most efficient method possible. We also analyze the risk factor. We structure our programs to drastically minimize the risk that is inevitable with all debt elimination programs.
We offer our clients much more than a debt settlement company does. The vast majority of debt negotiation companies simply help you settle your debts with your creditors- nothing more.
On the other hand, we provide additional services to significantly help to minimize the risks that are involved with negotiating with your creditors.
First, we offer a free, no-risk 10 day trial service. If, for any reason, you are not completely satisfied, you simply walk away. No commitments. No contracts.
Next, we provide a comprehensive credit repair service to all our clients. This is a $795 service that is absolutely free!
Also, we offer free attorney consultation (a maximum of five sessions) in case one of our clients’ creditors files a lawsuit.
Last, we provide a written guarantee that our clients’ creditors will settle for an average of 50% or more for all of the debts they attempt to negotiate.
Our services are competitively priced- and include the above services!