Finance, Loan, Debt and Credit.

April 20, 2018

How Will Credit Card Debt Settlement Affect My Credit Score?

You may have viewed commercial advertisements promising a solution to hopeless debt. Ads typically make statements such as “You can reduce your debt by as much as 60%” or “Break free of debt in six months or less.”

While these statements reflect the truth, they fail to mention how debt settlement might affect your credit rating. The process of debt settlement is typically explained in a clear way, promising to reduce the overall debt through skillful creditor negotiations. Some of these agreements could be temporarily reflected in a negative way through the major credit bureaus.

Natalia Osorio Editor of the “Credit Card Debt Counseling” website — — pointed out;

“…When a consumer calls a debt reduction company, they will be asked for the names of each creditor and the current outstanding balance. Then, a reduced amount is calculated and estimated, which includes a lower all-inclusive monthly payment. All payments are made to the settlement company rather than the creditor. During the first four to six months of the agreement, a majority of the payments go into the company’s pocket in the form of fees or settlement charges. All subsequent payments are held in escrow until it grows to a larger amount, at which point a settlement counselor will call the creditors and negotiate for a lower settlement…”

It would seem that taking the settlement route is the best option. After all, who wouldn’t want to have their balances reduced to less than half of the original amount? But, because you have stopped paying your creditors all together, a few temporary negative remarks will be placed on your credit bureau, but only until the negotiation process is complete. These few remarks are easily removed simply by asking the creditor to do so.

It is important for the consumer to monitor their credit reports during and after the negotiation process. Otherwise, negative remarks could remain on your credit report. On the other hand, once the debt is paid your accounts will reflect positively, a much better option than not paying them at all. Temporary inconveniences are a small price to pay for getting completely out of debt.

“…In some rare cases consumers are required to pay taxes on any negotiated debt. If the debt is an exceptionally large sum, and if other legal factors are in place, then the consumer might be required to pay a small amount of taxes on the forgiven debt. There are numerous and atypical circumstances which must be in place for this to occur, factors which do not usually apply to the average consumer…” N. Osorio added.

Further information about trusted and reputable companies for credit card debt settlement by visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

April 16, 2018

Is Credit Card Debt Settlement The Way To Go?

If you currently face a financial crisis due to unforeseen hardship, you may have considered settling your debt.

But, how do you know credit card debt settlement is the right way to go? With careful consideration and planning, it may be the best option to get out of debt.

What Does It Mean to Settle Debt?

Hector Milla Editor of the “Credit Card Debt Consolidation” website — — pointed out;

“…You may find yourself paying minimally on your credit card each month, only to find that the next month you owe more than you did previously. It is an vicious cycle caused my high interest rates and late fees. Debt settlement stops this process and allows you to negotiate a lump sum payment to your creditors. However, you must stop all payment in order to get debtors to cooperate with you…”

Once you stop payments, your debt settlement company will work out a deal with your creditors. Rather than taking out a loan, you negotiate down what you owe to a reasonable amount that satisfies both parties.

By working with your creditor to repay your loan, you regain their trust and begin rebuilding your credit. Due to the current economic crisis, more and more credit card companies are will to settle with consumers. Remember, debt settlement is only good for credit cards. You may not settle debt for other financial obligations such as students loans, mortgages, or car loans.

How Does the Debt Settlement Company Work?

Typically, debt settlement agencies have a long-standing relationship with creditors and can settle debt quickly. They work on your behalf to settle debt for a lower percentage than what you owe so long as you agree to make monthly payments on time. They are able to negotiate a payment between 35%-50% of the money owed.

The company will charge an upfront fee for services. Once your fee has been paid and you have stopped paying all creditors, negotiations begin. Once you negotiate, you begin redirecting your payments to the settlement companies.

Remember that some creditors will strongly resist settlement. Though you are most likely to settle all debt, some may be more difficult than others to negotiate down.

How Do I Find a Debt Arbitrator?

“…Finding the right company to advocate on your side may seem tricky. However, by checking references and reviewing compliance on the BBB website, you are sure to find the right representative for your needs. Research several agencies before settling on the right one…” H. Milla added.

Further Information By Visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

April 8, 2018

Can You Settle Credit Card Debt Without Damaging Your Scores?

Not every single debt help measure today has to have a hugely detrimental effect on your credit score. This is what many of the credit card companies want you to think, because they have a vested interest in your money and your continued struggle.

If consumers were to listen to credit card providers today, then they would believe that credit card debt is something that has to be paid off with only minimum payments. The companies use scare tactics in order to keep customers away from things like debt settlement. The truth is that you can settle without killing your credit score.

Hector Milla Editor of the “Get Rid Of Credit Card Debt” website — — pointed out;

“…Credit is calculated using a number of different factors. The three credit reporting agencies all have information on pretty much every little thing that can ever happen to your financial situation. Every time some company requests your credit report, it is noted on your report. Every time you miss or make a payment, it’s put down there. When you go over the limit, it’s there. These things are all weighed along with some other factors. Other factors include your total amount of debt owed, your open account number, and your payment history. With this in mind, settlement will have a different effect on these factors…”

Settlement in itself is not good for your credit score. It goes down as something of a black mark, since you did not pay the debt in full. But whatever it causes in negative terms, settlement makes up for with positives. Consumers get to stop missing payments and they stop the late payment deductions that occur. Consumers also completely knock out their amount of debt owed, which is probably the most important weighted factor when considering your score. When all of these things are put together, it is easy to see how your credit score might remain at its current level or even rise a little bit.

“…Lots of damage occurs when you let debt go unattended. You shouldn’t be worried about this when the time comes to get out of debt, though. If you can successfully use settlement to your advantage, then do so. It will more than make up for the slight dip that it immediately causes in credit. The card providers don’t want their consumers to know this, so they hide settlement options from you and scare you away from them. Beating debt requires this kind of solution, though…” H. Milla added.

Further information about trusted and reputable companies for credit card debt settlement by visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

April 4, 2018

Credit Card Debt Reduction – Are Debt Settlement Programs Useless?

Lots of dirty, unfounded rumors seem to find their way into the common thought processes of people these days.

Especially when talking about the financial world, people get ideas in their heads about certain services and they can find it very difficult to let go of these ideas.

Natalia Osorio Editor of the “Credit Card Debt Counseling” website — — pointed out;

“…One of them is the thought that credit card debt settlement is useless. This might have been stated by a person who worked with a company that wasn’t any good, because for the most part, credit card companies do a really nice job of helping people out of their debt situation…”

What is the purpose of settlement?The debt settlement option is primarily intended for those individuals who have found themselves in a big hole. You won’t find people settling debts for twenty bucks. This usually becomes the best option when your debt is in the thousands or even into the tens of thousands. The idea is that you will save up some money and offer your creditors a lump sum in exchange for releasing you from the debt commitment. This can make a lot of sense for both sides of the equation, because you will save money by paying less than the total debt and they will get something out of you instead of the nothing they probably expected.

Have people successfully done this?Paying less than what you owe seems sort of difficult to pull off to many people. It might seem like a pipe dream that only happens in the movies. The truth is that it many, many people have done well with settlement in the past. These people are hard working and they have used solid settlement firms to help organize the situation. If you are a consumer that holds lots of old debts, then settlement is within your reach. Many consumers before you have proven this to be true and they have proven that settlement is anything other than a useless venture.

“…Not every consumer is going to benefit from debt settlement and this probably has something to do with the stories that you hear about settlement. For some, it can just be another way to spend money and another way to knock points off of a credit score. Still, if you fall under the conditions that might warrant settling debts, there are many good companies that can show you the best way to make this happen…” N. Osorio added.

Further information about trusted and reputable companies for credit card debt settlement by visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

March 29, 2018

Credit Card Debt Settlement And Your Credit Score

Despite the fact that most citizens would prefer to pay off their debts in full rather than settling with their creditors, many credit industry experts suggest that this is an extremely difficult task to accomplish for the average consumer.

As a result, more people than ever are considering working through a debt settlement company to get out from under their credit card debts and on with their lives. However, most people have heard that using these services can affect your credit score. While it is true your credit score is affected by the use of settlement company, the damage might not be as bad as you think, depending on your financial circumstances.

Natalia Osorio Editor of the “Credit Card Debt Settlement” website — — pointed out;

“…Settling your debts rather than paying them off over time affects your credit score in a couple of different ways. For one thing, your credit report will indicate that you paid off less than the full amount that you owed the credit card company, and lenders will definitely take this into account when you apply for credit in the future. The other problem is that credit card companies will not consider accepting a settlement offer on an account until it is significantly passed due, by which time your credit report will indicate a number of missed payments on each account that you settle…”

Although the results of debt settlement on your credit report are not pretty, you might find that it is still worth the risk of going through with the process. If you are currently delinquent on you monthly credit card payments for 60 days or more, your credit report is already just as damaged as it would be if you settled your debts, and you do not have much to lose by doing so. Similarly, if you know that you are going to have to start missing payments because of a sudden economic hardship such as a medical emergency or loss of employment, those missed payments will damage your credit score anyway, and a settlement company can help you cut your losses.

“…If you have great credit and think that you can continue making your monthly payments until you are in a position to start paying off your credit card debt more aggressively, than it might not be worth damaging your credit just to settle your debts. Still, some people who have great credit have gotten so fed up with living in debt that they would rather have worse credit and no debt than to continue living under the shadow of a mountain of credit card debt…” N. Osorio added.

Further Information By Visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

March 23, 2018

Effect Of Credit Card Debt Settlement On Credit Rating

There are some different opinions out there on how debt settlement impacts a person’s credit rating, so it really depends upon who you talk to if you’re trying to get the truth.

The settlement companies are right in telling people that settlement is one of the better options out there for one’s credit score. Instead of paying off debts slowly with a bunch of late payments, missed payments, and the like, people are smart in using settlement to knock off the balance completely. At the same time, one would be completely remiss if they didn’t mention the slight negatives that go along with settlement.

Starting with the negatives

Natalia Osorio Editor of the “Credit Card Debt Settlement” website — — pointed out;

“…Taking a look at the negatives first of all is a good place to start. The reality of the situation is that being in debt is not good for anyone’s credit rating. It would be much better if these people had clean records or even no credit history, rather than having debt. Settlement will put a mark on a person’s credit report, but it won’t be nearly as bad as you might think. The thing to know is that any plan that gets one out of debt is going to be tough to pull off while retaining perfect credit. This is because of the nature of how the card companies work…”

Assessing the positivesThere are many positive effects that debt settlement will have, when compared to the other options that a consumer might think about. Many consumers have the option of either settling their debts, leaving the debts unattended, or fighting to pay them off slowly with the minimums. With any of these plans, one will have some credit hits. The thing about settlement that makes it a good option is that it takes care of things right now. As consumers will find out, credit reports are a living being. The longer away you get from some event, the less important it becomes. After seven years, things don’t even show up on the report anymore.

“…Weighing the options in the real world is absolutely necessary. In the short term, settlement firms will admit that a person might hurt their credit by settling up. The more important consideration is the long term, though, and settlement gives individuals a chance to rework their lives and get ahead for the future. That is much more important than any short term detriment that may or may not occur…” N. Osorio added.

Further Information By Visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

Credit Card Debt Settlement Negotiations – Steps For Success

Credit card debt can build so quickly that it can be extremely difficult to get rid of a high debt level without getting a debt settlement to discharge large portions of the remaining sum.

The process is much like any other negotiation process, and it requires the same type of record keeping to make sure that the agreed-upon settlement is one that both parties accept and are bound by.

Hector Milla Editor of the “Credit Card Debt Consolidation” website — — pointed out;

“…The first thing to remember is that only what is in writing is legally binding. Getting one agent to agree to a credit card debt settlement over the phone doesn’t mean that there is a binding agreement that the company will actually stand behind. There is no legal way to prove that the agreement was made over the phone, so the settlement amount must be in writing. Don’t make a final payment on an agreed settlement until the agreement is in writing and in hand…”

Another important factor is that a credit card debt settlement is not something that a company has to offer to its borrowers. To make a credit company interested in making such an offer, a borrower much be willing to disclose their financial problems. If the company thinks that a borrower is asking for an offer simply because they don’t want to pay the total, it is not in their best interest to reduce the debt. If, however, a company believes that the offer is the only way that they can get any payment on the debt, they may be willing to consider a credit card debt settlement offer.

In some cases, the final decision about whether the company will offer some type of settlement agreement may come down to concrete rules that the company has about making such offers. It may require an enormous amount of financial information to be submitted or it may only be offered for those who have a specific amount of debt.

“…A borrower who has many credit cards and a high level of debt may be seen as someone who is on the verge of bankruptcy and therefore a person who may not be able to pay more than a negotiated amount to settle the debt. In a case like that, the company may be motivated to make the agreement to avoid losing the entire amount of the debt to the poor finances of the borrower…” H. Milla added.

Further Information By Visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

March 19, 2018

Credit Card Debt Settlement Warning – Rules To Avoid Trouble

Many people with credit cards find themselves seeking credit cards debt settlement to help end the debt spiral that causes bankruptcy in thousands of people every year.

A settlement can end enormous interest payments that can add up to be more than double the original sum borrowed. However, there are some ways that consumers can run into trouble before and after they try to settle their existing debt. To avoid these problems, there are several things to keep in mind in order to get out and stay out of debt for the long term.

Hector Milla Editor of the “Credit Card Debt Consolidation” website — — pointed out;

“…When negotiating a credit card debt settlement, be careful to keep records of all conversations. This includes letters, phone calls and any meetings that occur. To ensure that an agreement is exactly what it is supposed to be, it’s important to have everything in writing. If the written version of the agreement is different from the verbal version, having the date of the phone conversation, the time it took place and the name of the agent who made the agreement can help with getting the written agreement corrected…”

Avoid falling back into more debt after the credit card debt settlement has been made. Consumers who continue to run up credit card bills after their agreement has gone through and some of the sum has been discharged may find themselves right back in the same position, and this time the company may not be as forgiving. Instead, consumers should work on curtailing spending to avoid falling into the same trap that may have no escape. Consumers should consider cutting up some of their credit cards, seeking out lower-interest cards or taking on a part time job to stay out of debt after the original debt has been paid off.

“…Don’t promise more than can be paid back. Consumers who are able to get a credit card debt settlement must pay the agreed amount on time to keep the agreement in force. Missing the payment or payments can nullify the agreement, making the borrower liable for the entire debt instead of just the settlement amount. When making the arrangement for a reduced amount, offer to make payments if the entire amount can’t be paid all at once. It is better to be able to uphold a settlement amount that is larger than to miss a payment for a smaller one and have the entire deal voided…” H. Milla added.

Further Information By Visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

March 14, 2018

Credit Card Debt Settlement And Credit Score – Avoid Mistakes

It is easy to make mistakes when it comes to finances because there are so many options and so many people telling consumers what they should be doing with their money.

One of the few things that everyone agrees on is that getting bills paid on time and as agreed is one of the most important things for staying in good financial shape and keeping a high credit score. In some cases, a credit card debt settlement can save a credit score from dropping so low that credit becomes impossible to get.

Hector Milla Editor of the “Credit Card Debt Consolidation” website — — pointed out;

“…Getting a credit card debt settlement is something that does impact a credit score. It will lower the score a little, and some consumers worry about this impact on their credit history. However, what many borrowers don’t take into account is that their credit scores will be far lower if they don’t get a settlement and instead get so far behind that they are sued by their credit card company or have to file bankruptcy because they can’t pay the bill. These have far worse impacts on a credit score, and it takes far longer to recover from them after they happen than a simple debt settlement…”

One of the worst mistakes that a consumer in a poor financial position can make is to wait too long to find out about credit card debt settlement. Though it is often a choice that is a last resort, borrowers should not wait until their financial position is so poor that they are unable to make a reasonable settlement offer to a credit card company. Rather than continuing to struggle to make sky-high monthly payments and paying late fee after late fee, starting the negotiation process can put an end to it all and allow consumers to get a fresh start on their debt before it gets out of hand.

“…For consumers who do choose this route, making a fair offer and taking the time to negotiate it to the best rate possible can be helpful for getting the rate as low as possible. Making a lowball offer that would not be reasonable to a card company is not likely to be accepted, and it may make the negotiation process more complicated. To avoid this mistake, consumers should look at the amount that they can reasonably pay to a company without making a late payment and offer this amount…” H. Milla added.

Further Information By Visiting;

Hector Milla runs his corporate website at where you can see all his articles and press releases.

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