Debt settlement can be a legitimate way for a debt ridden consumer to pay off their debts for 50 cents on the dollar or less and become debt free. All of this assuming that they are doing business with a good company that has fully informed them of all the pros and cons.
One of the downsides of debt settlement or any settlement made with a creditor that involves paying less than the amount owed is that it will almost always result in that account reflecting negatively on your credit report. It will report one of the following ways as:
Settled for less than owed/agreed
Paid charge off
Simply settled account
All of these are bad and will carry a numbered negative code that could be 2 through 9. Anything other than 1, which means paid as agreed, is very bad.
So while debt settlement can get you out of debt, it destroys your credit. Even one negative account could drop your score 50 points, and multiple accounts could cost 200 plus points!
So you’ve done the hard stuff, you’re debt free, what now?
You need to fix your credit and a real expert in credit repair can remove over 50% of these negative accounts. That’s huge! And it restores points immediately.
The big reason why credit repair is so effective for debt settlement clients is the fact that the creditors and collectors have been paid, so when they are challenged or disputed as to why this information is on your credit report, they have no interest in responding to you or the credit bureaus, and since they don’t respond by law the account must be deleted, removed, made to disappear, etc!
I have seen 80 percent removal of settled accounts, 80 percent is incredible!!
But don’t stop there; the next step is to boost that score even more by building guaranteed powerful, effective, score boosting credit lines. 30 percent of your score depends on available credit, that’s a lot and the right accounts can boost your score up to 50 points or more.
With the right guidance, credit repair could be the answer to finishing what you started to end up being debt free and have a great credit score.
Robby Allen, President of Your Credit Repair Coach