A Credit Settlement Plan is
a negotiated agreement with your creditors to pay back a portion
of your unsecured debt. You are probably lready aware of debt
settlement as an alternative to
bankruptcy or a solution to your
debt. Instead of filing for bankruptcy, you can pay off your
credit card debt, medical bills and other unsecured debt with
a negotiated debt settlement.
If you are looking to avoid bankruptcy, debt settlement could
be the best option for you. Once your debt settlement account
has grown to a certain amount, the debt settlement company calls
your creditors and begins negotiating a settlement with them.
Debt negotiation specialists work with your creditors in order
to negotiate a settlement that is much less than the balance
owed.
Because of the potential negative effects on a consumer's credit
report, debt settlement should only be considered when an account
is already severely delinquent with a credit report reflecting
the status. The factors that damage your credit score are a history
of late and missed payments, charge-offs, bankruptcies and court
judgments filed against you.
RESOURCES: Credit Settlement
FTC Bureau
of Consumer Protection - Consumer Information: Credit & Loans
Credit Report
and Score Information from Experian.com
TransUnion
- Check Your Credit Report and Credit Score Online, Instantly
and Securely
Equifax
Products: Credit Reports, Credit Scores & Identity Theft
Protection
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Personal Finance
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it with a higher priority than you would with any other
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