subject: "I Don't Want To Ruin My Credit" [print this page] "I Don't Want To Ruin My Credit" "I Don't Want To Ruin My Credit"
The greatest concern that I hear from my clients is: "If I settle my debts with my creditors, I'm worried that my credit will get ruined".
I understand. The truth is, if you combine credit repair with debt settlement, your credit will only be temporary affected, not ruined. A quality debt settlement company that offers credit repair as part of their services should actually improve your credit- often much better than it is now.
Besides, if you have an excessive amount of unsecured debt, your credit is already negatively affected. Debt settlement and credit repair go hand-in-hand, like peanut butter and jelly.
In Order To Save The Most Amount Of Money, Focus On The Big Picture
I strongly recommend that you prioritize your situation.Your main focus should be on getting out of debt.
I have a question for you. What would you rather have: good credit now and be overwhelmed in debt for decades, or be completely debt-free and have a temporary low credit score? Don't say you want both good credit and be debt-free because unfortunately, that's not possible-yet.
For now, don't worry about your credit. Why would you want a good credit score at this time anyway? So you can add more debt and end up digging yourself in a deeper hole that you might not be able to get out of.
Most people don't realize that their credit is already ruined if you currently have too much debt. Excessive debt is viewed by lenders and creditors as a sign of someone struggling. Think about it. Who would you rather lend money to: someone that's maxed out on their credit cards or to an individual that has a lot of available credit, but doesn't need to use it?
Whether it's true or not, that is how it's perceived by the creditors. Consequently, the more debt you have, the lower your credit score will be. Hence, many lenders will offer higher interest rates and require a larger down payment if a borrower has too much unsecured debt.
When a lender reviews an applicant's credit history, about 80% of the weight of his/her decision for loan approval is placed onthe most recent two years of payment history . Very little emphasis is placed on payment history older than two years.That is why your credit will be only temporarily affected with debt settlement.
Credit scores are not etched in stone, there are many strategies and techniques that can be implemented to raise your credit score.
Once You're Debt-Free, Your Credit Score Will Soar!
Look, if you will, at having too much credit card debt like filling a balloon with water-the water being your credit card debt. If you put a small amount of water in the balloon, no damage will be done. However, if you put too much water (debt) in the balloon, it will eventually burst, and as a result, bankruptcy may be inevitable.
With debt negotiation, we are releasing the water from the balloon. Once your debt is eliminated, your credit score can start to rise. Then an emphasis can be placed on strategies that will raise your credit score.
Now that you have a second chance at a new beginning, it's only a matter of time before you have excellent credit! To discover the fastest method of eliminating your debt, please visit us at http://debtfreesolutions.mobi
