Financial Updates

Debt settlement is the process by which you pay less than the amount you actually owe to the creditors, and they agree to accept and settle the debt with this payment. It can be negotiated if you are lagging behind the payments. 

We opt for debt settlement when we try to qualify for certain loans that require good credit report with no outstanding debt. The debt settlement companies negotiate a reduced payment to the credit card company on behalf of the debtor.

1. Rise in credit score : Settle your debt and request your creditor to delete your past credit record and your credit report would appear as settled. After a debt settlement if you receive a statement stating paid it is best for your account listing. This listing does not have any negative or positive impact on your credit report or score. There will be a raise in the credit score on the deletion of the account.

2. Myth regarding debt settlement : There often a misconception that a debt settlement would not modify or increase the credit score. While settling your debt try to negotiate with the credit rating as that would have a positive impact on your credit score.

3. Debt relief improves credit score : Debt settlement is a debt relief option it's goal is to improve the credit score in the long run and that would enable the debtor to recreate a positive credit history once they are over with the program.

4. A good debt settlement company can be your savior : A debtor who has graduated from a reliable settlement company has innumerable opportunity to improve its credit score. As he is free from the burden of debt he can re-establish a positive credit line as you can highlight the fact that you owe zero balance to the creditors.

Opting for good financial adviser can help to pull you back on debt free track. The debt settlement initially might seem to be harmful but in long run it helps to improve your credit score as you pay off your debt. You even get an opportunity save a lot of money as the debtor pays much less than what he owes to the creditor.