subject: Debt Settlement Deals - Get a Lower Credit Score But You Eliminate Unsecured Debt by 60% [print this page] Debt Settlement Deals - Get a Lower Credit Score But You Eliminate Unsecured Debt by 60%
Wheeling and dealing doesn't sound like a good thing to do in the debt relief business. Yet, nowadays, it's not unheard of. Bankruptcy is kind of a debt settlement deal, but what sounds good on the surface can have deep and lasting ramifications. With bankruptcy, you'd be wheeling and dealing your future credit worthiness and it's a risk you may not want to take. Your credit score will drop like a thermometer in ice, and it won't unfreeze for some time to come. However, there are other, legitimate debt relief deals out there, and not shady ones, either. But you do have to take caution. With Internet scams on the rise, it would be prudent to be selective. Here are some tips on finding a legit debt settlement deal:
- The bankruptcy deal - Bankruptcy is probably a disadvantage for most consumers. For a debt relief strategy, it's not the best. It not only lowers your credit score, it may pretty much eliminate it. You'll be in the bottomless financial pit for years. Bankruptcy is a bad deal.
- The debt settlement deal - It's possible to eliminate your unsecured debt by 60%. Great deal if you can find it. And you can. There are debt settlement companies in existence today to help the consumer negotiate a deal with their credit card companies and reduce the total amount owed. It's legal and it's a prudent debt relief strategy. With the economy at a bust, credit card companies are in a negotiating frame of mind. If they can work with the consumer to settle up debt rather than watch and wonder if the consumer might opt for bankruptcy, they'll rush in and get what they can. That's where a debt settlement company can work to your benefit, it's what they do.
But here's the real deal: it may, indeed, lower your credit score initially. You should be prepared for that as paying off part of the debt will go down on record. But let the record state that you did pay off your debt and did not shirk the responsibility. Your credit score will heal and it will heal much faster than if you did file bankruptcy. Debt relief through settlement is a better deal.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.
