subject: Bad Debt Settlement – How To Avoid Make Your Credit Worst [print this page] Bad Debt Settlement How To Avoid Make Your Credit Worst
With the rate of personal debt at all time highs and the average credit card interest at an unaffordable level, many people are looking for ways to get themselves in a better financial situation.
One of the most common ways to do this is to work with a financial counselor and get a debt settlement or consolidation. While this could be a great financial decision, there are several things that must be avoided in order to ensure that the settlement does not make your financial situation or credit score worse.
Aurora Lillo Editor of the "Best Debt Settlement Companies" website -- http://www.BestDebtSettlementCompanies.org -- pointed out;
"...The first tip in how to ensure a debt settlement or consolidation plan does not hurt your financial situation or credit score is to understand how much the plan costs. Many privatized companies make money by charging fees. While many of the fees are completely reasonable, you need to ensure that you can actually afford to pay the fee and that the fee is financially worthwhile. While they may not be as routinely successful, the government does provide many financial counseling services which could help you better understand your position and how to manage your bills on an ongoing basis..."
The second tip in how to ensure a debt settlement or consolidation plan does not hurt your financial situation or credit score is to understand how the new plan is benefiting you. Many people will accept a plan with blind faith and not fully understanding how they have improved their situation. The best way to see how you are benefited is to compare how long it will take you to pay off your bills in the new plan and then compare that result to how long it would have taken you to pay off your bills with the new plan.
"...The last tip in how to ensure getting a consolidation plan does not make your financial situation or credit score worse is by actually following through with the plan. Many people accept a new plan which would be beneficial, but they end up getting back in the habit of making late payments or missing them all together. Before they know it, they are back in the same position as before and have a worse credit score. To ensure that your plan works to your advantage, you need to make sure that you make all of your payments on time and that you are doing everything you can to live a life without depending on credit cards..." addedA. Lillo.
Further Information By Visiting; http://www.BestDebtSettlementCompanies.org
