Credit Score & Other Consequences
Date: Tue, 10/24/2006 - 11:39
I am in Southern California and due to the several posts that I've read, I do not want to deal with phone calls harrassing any of my coworkers, bosses, friends or family should any of these PDLs reaact before the debt settlement starts.
Thank you and I appreciate any insight on my inquiry.
Shala, the best thing that anyone can do for repairing his/her c
Shala, the best thing that anyone can do for repairing his/her credit is to pay the bills on their own. You get the maximum scores if the payments are done in time and in full.
Many can't do this because of the highest interest rates tucked on the loan account and if they are in defaults, all payments done go towards the fees only. Needless to say, the loan never gets paid as expected.
In such a situation, any debt management program, whether it is consolidation, settlement or bankruptcy is helpful. You have to figure out which plan is the best choice for you. Some people prefer consolidation because the principal amount is paid off and the interest rates are kept lower in the program. For some, debt settlement is a choice because they can't afford to pay the principal amount. Even there are situations when people have no other way but to file for bankruptcy. You have to understand which one is the best in your place.
A debt settlement23 program will appear in your credit report and the creditor will report your accounts as 'settled'. Your consultant may negotiate with the companies and arrange a better reporting if they have had dealings with them in the past.
Most of the payday loan companies don't report to the credit bureaus. They report the files with the Teletrack. But if some collection agency is collecting on behalf of your PDL lender, they will report in your credit file.
