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Debt Settlement, Debt Settlement — Restoring Your Credit
by Marie Megge
Since you’ve found this article, there’s a good chance you’re considering debt settlement, or have already enrolled in or completed a debt settlement program. Either scenario puts you in a position of wondering about the restoration of your credit following the completion of a debt settlement program.
As you know, debt settlement allows for individuals to negotiate with their creditors, and ultimately reach a satisfactory agreement to pay their credit accounts off for less than the full balance. Normally, people successfully reach settlement amounts of 50% or less of the actual amount that is owed.
How does this process affect your credit score? Well, debt settlement in itself doesn’t negatively impact your credit score — delinquency, however, does. You see, creditors won’t agree to settle your accounts for less than the full balance unless the account has reached a certain stage of delinquency. The majority of individuals who choose debt settlement do so because they’ve previously contacted their creditors for some type of interest reduction or relief, only to be told that the interest rate and fees being charged will remain, and no reduction can be granted. This results in many people seeking an alternative form of relief — either bankruptcy or debt settlement.
Once your accounts become delinquent, obviously your credit score will be reduced, and in some cases, significantly. The good news is that you can indeed restore your credit rating after the process of debt settlement is behind you. Fortunately, your credit score will automatically increase after your creditors report your account’s updated status to reflect a zero balance. In some cases, however, it may be necessary for you to become proactive and work on your credit reports on your own, one at a time.
You see, some creditors are a bit “sloppy” when it comes to credit reporting, and they may not automatically update your accounts. On the other hand, sometimes mistakes are simply present and correction of these mistakes is required.
To be certain that there’s absolutely no question that your credit report has been updated, I suggest that you copy all of your settlement documentation and forward it to each of the major credit reporting agencies, requesting the necessary updates. This will ensure that your credit files are accurate and your credit score will increase accordingly. Once the updates have been made, you can expect a credit score in the mid-600 range within approximately 9-12 months after your accounts have been paid off. This range may be even higher if you’ve kept up on your mortgage(s) and/or automobile loans.
Many debt settlement firms will provide you with the necessary information and documentation required to begin the process of restoring your credit. So you see, there really is light at the end of the tunnel, and you will once again hold your head high with a respectable credit rating. I wish you the best in your endeavor to put debt behind you and restore your credit.
About The Author: Marie Megge is a consultant in the credit services industry. Over the past several years she has assisted many individuals in resolving their debt-related matters. For more information regarding credit and debt visit http://www.donaldsonwilliams.com
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Debt Settlement, Debt Settlement Companies — Making The Right Choice by Marie Megge Approximately 580 Words
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You may want to try these websites for additional information
http://www.thedebtsolution.com/
http://www.cleardebtsolution.com/
http://www.debtworkout.com/
The information provided in this article is the express opinion of the author. Exchangenet is not responsible for the content!
Since you’ve found this article, there’s a good chance you’re considering debt settlement, or have already enrolled in or completed a debt settlement program. Either scenario puts you in a position of wondering about the restoration of your credit following the completion of a debt settlement program.
As you know, debt settlement allows for individuals to negotiate with their creditors, and ultimately reach a satisfactory agreement to pay their credit accounts off for less than the full balance. Normally, people successfully reach settlement amounts of 50% or less of the actual amount that is owed.
How does this process affect your credit score? Well, debt settlement in itself doesn’t negatively impact your credit score — delinquency, however, does. You see, creditors won’t agree to settle your accounts for less than the full balance unless the account has reached a certain stage of delinquency. The majority of individuals who choose debt settlement do so because they’ve previously contacted their creditors for some type of interest reduction or relief, only to be told that the interest rate and fees being charged will remain, and no reduction can be granted. This results in many people seeking an alternative form of relief — either bankruptcy or debt settlement.
Once your accounts become delinquent, obviously your credit score will be reduced, and in some cases, significantly. The good news is that you can indeed restore your credit rating after the process of debt settlement is behind you. Fortunately, your credit score will automatically increase after your creditors report your account’s updated status to reflect a zero balance. In some cases, however, it may be necessary for you to become proactive and work on your credit reports on your own, one at a time.
You see, some creditors are a bit “sloppy” when it comes to credit reporting, and they may not automatically update your accounts. On the other hand, sometimes mistakes are simply present and correction of these mistakes is required.
To be certain that there’s absolutely no question that your credit report has been updated, I suggest that you copy all of your settlement documentation and forward it to each of the major credit reporting agencies, requesting the necessary updates. This will ensure that your credit files are accurate and your credit score will increase accordingly. Once the updates have been made, you can expect a credit score in the mid-600 range within approximately 9-12 months after your accounts have been paid off. This range may be even higher if you’ve kept up on your mortgage(s) and/or automobile loans.
Many debt settlement firms will provide you with the necessary information and documentation required to begin the process of restoring your credit. So you see, there really is light at the end of the tunnel, and you will once again hold your head high with a respectable credit rating. I wish you the best in your endeavor to put debt behind you and restore your credit.
About The Author: Marie Megge is a consultant in the credit services industry. Over the past several years she has assisted many individuals in resolving their debt-related matters. For more information regarding credit and debt visit http://www.donaldsonwilliams.com
These articles on lifestyle and more
Reprint this article free of charge as long as you keep the author's resource box or bio intact and the links active. A copy of the ezine or URL of the page where the article was reprinted emailed to the author would be very much appreciated. debt settlement
Return to the selection of debt settlement
You may want to try these articles on debt settlement
Debt Settlement, Debt Settlement Companies — Making The Right Choice by Marie Megge Approximately 580 Words
Debt Settlement, Eliminate High Interest Credit Card Debt by Marie Megge Approximately 403 Words
Debt Settlement, Debt Settlement by Thomas Morva Approximately 354 Words
Debt Settlement, Debt Settlement Company by Thomas Morva Approximately 325 Words
Debt Settlement, Debt Settlement Lawyer by Thomas Morva Approximately 305 Words
Debt Settlement, Debt Settlement Strategy by Thomas Morva Approximately 368 Words
Debt Settlement, How To Use Debt Settlement Companies For Credit Consolidation by Peter Wilson Approximately 489 Words
You may want to try these websites for additional information
http://www.thedebtsolution.com/
http://www.cleardebtsolution.com/
http://www.debtworkout.com/
The information provided in this article is the express opinion of the author. Exchangenet is not responsible for the content!
