Tag Archives: creditors

Will Credit Card Debt Settlement Affect My Credit Score?

Posted by on April 22, 2011 No comments
Because settlement is not a magic solution and it happens in real life, it will definitely have an impact on your credit score. This should come at no surprise to people who have been around the financial world for a while. Every single little thing that you do can come back to haunt you on the credit report. The more comforting side of this is that every good thing you do will also show up on the credit report and it will contribute to a good credit score. Settlement is one of those things that many people don’t understand completely, so they often offer opinions on it that are simply erroneous. 

Settlement does bring your score down some

Know that going into the process, settlement will bring your credit score down initially. When it is reported that you have settled, this will not escape the view of the credit reporting agencies. But how much of an impact will it have? That is the more important question and it is what people are asking more and more. Settlement will not have a huge effect because it also brings about some positive changes on your report that will counter the negatives. These changes have to do with total debt amounts and the ratios of available credit to credit used.

When you make settlement your chosen path, things even out to a point, because settling knocks off a monster amount from your credit report. Some people use the process to get rid of $10,000 or more in debt, so you can see how that might be a positive for your score. The creditors who use your report to gauge their risk will much prefer a person who has less debt, but has that little smudge on their credit report, over someone who still owes tens of thousands of dollars all over the place.

Credit card debt settlement provides a measure of finality, as well. It is something that will bring you to the point where you are able to move on and start all over. Starting new might seem like a good thing to so many people who have run into bad luck in their financial life. With no more collection calls and only good decisions in the future, rebuilding your credit score and starting out on a new path is a reasonable expectation. This will bring good tidings and top notch scores, as well.

Credit Card Debt Settlement – Ways to Negotiate a Settlement With Creditors

Posted by on March 17, 2011 No comments
Paul Sarwana asked:




Credit card debt affects more people than you know. Just about everyone you talk to has at least 2 credit cards tucked away on their wallet. With the way the economy is today it is no wonder that people are finding it harder and harder to pay these credit card bills. Credit card bills are usually the last to get paid and they are the ones that go up the fastest. With finance fees, late fees and over the limit fees, your bill can easily go up by $100 per month if you are far enough behind.

Most people feel that there is no way out of this and therefore they ignore the bills. This can be very harmful to their credit and will haunt them for a lifetime. Many people do not realize that they can most likely cut the credit card debt in half if they seek a credit card debt settlement. The trick is to know how to approach the credit card company to ask for this settlement.

You need to try to have some cash to work with. This will be helpful for when you call the credit card company and ask for a settlement. What you need to do is call and talk to a financial or collections person at the credit card company. Be very polite and tell them that you have x amount to offer them for a settlement. Most of the times they are able to offer you a certain discount.

Keep in mind that they have the ability to negotiate the amount of the settlement. They will start off by offering you the smallest break on the bill. Generally they can offer you at least 50% if not 70%. Most cards can offer a total of a 70% discount on the total of the bill if you are paying it off right away.

When you call you want to know what your total bill is and start off by offering them 70%. You can always negotiate up if they will not go for that low of an amount. Just be prepared to pay what you and the credit card company agrees on. This will save you a great deal on the debt so you will not have to pay the entire bill.

This will take the bad mark off of your credit or at least show that the debt was paid in full by you. It will show that it was a settlement but the key thing is that you paid it off in full regardless of the amount. If you find that you have credit card debts that are burying you, then you may want to consider calling them and seeing of you can do a credit card debt settlement.

Yvonne

what are the consequences of not paying off credit card debt?

Posted by on March 9, 2011 5 comments
Penny H asked:


My family and I had an unplaned birth, and our now overwhelmed with medical expenses and the new expenses from the child. Since we did not have health insurance we became overwhelmed with bills. Over the last couple of years we have fallen progressively farther behind on our credit card bills. We have not made a payment on some of the cards in over nine month. Utlimately, besides lowering our credit score, is the consequences of not paying the cards. Can the creditors take our vehicles? Take money from our bank accounts? Garrnish our wages? We are very worried about our debt and would like to pay the debt off, yet feel very intimidated by the whole process. Thanks for any help

Reed

Credit Card Debt Settlement Services — Here to Help You

Posted by on October 22, 2010 No comments
Einvid asked:


www.debtfreeassociates.com — Don’t file for bankruptcy because of excessive credit card debt! Our settlement services can negotiate your debt so that you can be free of debt forever. Our team of friendly representatives understands that debt can be stressful. We can stop the harassing phone calls and letters from creditors today. Visit Debt Free Associates at http to learn more. You may contact our debt specialists at: Debt Free Associates 2768 Loker Ave W suite 101 Carlsbad, California 92010 Toll Free: 877-425-8332 Website: www.debtfreeassociates.com

Ayden

Simple Guide to Negotiating Credit Card Debt Yourself

Posted by on September 11, 2010 No comments
W. M. Blake asked:




For many people, overwhelming credit card debt is not the thing that they fear having happen to them the most financially. When a wave of credit card debt crashes on you, though, you are sure to feel a distinct sinking feeling.

Take heart, though, because they are lots of ways to deal with credit card debt effectively. One option is credit card debt negotiation. This method reduces the total amount of debt that you owe or at least helps you to discover a payment plan that is easier for you to carry out.

Credit card negotiation plans can be employed once the account has been passed on by the credit card company to a third-party collection agency. You very well may be able to negotiate a four thousand dollar outstanding balance into two thousand dollars if you are willing to pay a lump sum.

The company’s ultimate goal is receiving some kind of money from you. For that reason, it is actually more advantageous for them to accept your lump sum payment. It also works out great for the person that owes the money since their debt goes away.

Both parties involved, lender and debtor, receive benefits from credit card debt negotiation plans. Filing for bankruptcy or ignoring your debt will cause much more damaging effects to your credit than debt negotiation ever will.

How to Do It

The most effective way to negotiate your credit card debt is also the cheapest; calling the creditors whom you owe money to and letting them know about your situation. This will not work out perfectly in every situation, but it is likely that at least one or even several may be willing to work with you.

In the perfect and thus unrealistic situation that we all dream of, all the debt collectors you call would be happy to reduce you debt. This is not the case, but if you manage to find even just one company willing to cut you debt in half, your credit card negotiation plans will have been completely successful.

Stella