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Credit Repair And Debt Settlement - How To Do Both At The Same Time
If you are concerned about the hit to your credit score that using debt settlement will entail, then it may reassure you to learn that you can be taking steps to repair your credit score at the same time you are settling your debt, thus effectively countering some or all of the negative effects on your credit score that debt settlement inevitably entails. We call this the Credit Repair Debt Settlement strategy. The basic approach is this: Just prior to beginning the process of debt settlement, you’ll want to establish some new credit. It doesn’t have to be a large amount; a small auto loan, personal loan, or credit card will do the trick. If you don’t think you can qualify for another credit card, you can always obtain a card that requires a deposit equal to amount of credit granted. This will be sufficient to establish new, clean credit, and the amount doesn’t have to be large; $500.00 will be quite sufficient. The point is to use it every month, and pay off the balance in full every month. You don’t want to use it for more than 40% of the total balance, so just use it to buy a few groceries, then pay the balance in full. If you can get a small auto loan on top of this, so much the better. One or two thousand dollars will be sufficient, and the monthly payment will be very small. Having two new, clean credit sources on your credit report will go a long ways towards counteracting the negative effects that engaging in debt settlement will hit your credit report with. Once you have established two or more new credit references, you can begin the debt settlement process. Understand that not all forms of debt settlement negotiation necessarily impacts your credit score in a negative way. For example, rather than looking at only reducing the principal owed on your credit cards, look at your overall debt picture, and see if there are other areas that can be cut, such as car payments and mortgages. If your mortgage is killing you, then there are options available that can reduce your monthly payment quite significantly, usually by reducing your interest rate or extending the term of the loan. The government program Hope Now can point you in the right direction, and along with other homeowner relief programs, has helped close to a million people reduce their mortgage payment. Additionally, if you have a large car payment, you can contact your lender directly and attempt to negotiate a lower rate of interest. This can easily shave another couple of hundred a month off of the expenses side of your balance sheet. Doing this plus saving on your mortgage may be sufficient to negate the need to settle your credit card debt; if not, these options should be pursued anyways, in conjunction with standard debt settlement, as part of your overall credit repair debt settlement strategy. To summarize, our credit repair debt settlement strategy involves taking out two or more new sources of credit, reducing one's mortgage payment and car payment, and finally, if needed, settling with your unsecured creditors. For the final option, we recommend people find a good debt settlement company to represent your interests; you can attempt to do this yourself, but results aren’t nearly as good as they are when you have an experienced firm going to bat on your behalf. Most of us simply don’t know how to play hardball with creditors, so it behooves us to find someone who does to do it for us. Article Directory: http://www.articledashboard.com With this economy, many are struggling. We’ll help you find the resources to manage debt effectively. For more information on credit repair debt settlement, please visit us at www.CureMyBadCredit.com. |
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