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					Title:
Is Debt Negotiation Bad? Points To Consider


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366


Summary:
Debt negotiation companies that claim they can wipe your credit clean or guarantee they can reduce your
debt are bad because they can’t deliver. But reputable companies can negotiate with your creditors, often
reducing your debt 10% to 50%. They can also help you rebuild your credit score by reducing debt and
getting a handle on your monthly payments.


Claims That Are Too Good


Companies claiming that debt negotiation has no impact on your credit score or that they can re...



Keywords:
debt consolidation, credit card debt, debt relief



Article Body:
Debt negotiation companies that claim they can wipe your credit clean or guarantee they can reduce your
debt are bad because they can’t deliver. But reputable companies can negotiate with your creditors, often
reducing your debt 10% to 50%. They can also help you rebuild your credit score by reducing debt and
getting a handle on your monthly payments.


Claims That Are Too Good


Companies claiming that debt negotiation has no impact on your credit score or that they can remove
negative scores are lying. Creditors will report accounts that have been reduced, and it will stay on your
credit history for seven years. All other negative scores, such as late or missed payments, will also be on
your record for seven years even if accounts are closed.


Guarantees that your all your debts can be reduced should also be avoided. Creditors have no requirement to
negotiate with you or a debt negotiation company. But if creditors see that you are struggling with payments,
they may lower your debt to recoup at least some payment from you. With bankruptcy, lenders may never
see repayment.


Promises You Can Believe
Reputable debt negotiation companies can reduce your debt. They are skilled at bargaining with creditors.
While they can’t guarantee every account will be reduced, they can make a significant impact.


Your credit score can be raised after your debts have been reduced if you manage your credit wisely.
Regular payments, reduced debts, and cash reserves will soon make you eligible for loans. When your credit
rating is poor, you can use a subprime lender. In some cases though, within two years you can qualify with
for a conventional loan.


Warning Signs To Watch For


Avoid companies that make extreme claims or charge high up front fees. Also, skip companies that advise
you to stop payments on your accounts. Not only will you rack up late fees, but you will further hurt your
credit score.


Debt negotiations are a valuable tool to avoid bankruptcy. While such reduced debt will lower your credit
score, you can soon be on your way to better credit. Be sure to research companies before you sign up and
you’ll protect yourself from scams.




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