I am new to this and need some help...
Date: Thu, 02/09/2006 - 19:49
I am just now starting to put some feelers out there to find out what I need to do. I have been hearing of all kinds of horror stories from people who have gotten screwed over by bogus companies.
I am not sure if I should go tha debt settlement route or tha debt consolidation route. I would like to know which way would be the most damaging to my credit score. My credit score as of right now is 662 and I dont want to damage it to where I have to start all over.
I have too much credit right now as I found out when I went to get a debt consolidation loan from my local bank. My debt to income ratio was to high for me to get tha loan. That is why I am here now. I have never been late on any of my payments but the new federal rules are really starting to put a crimp in my budget.
I would really appreciate anyones help in this matter as I am in waiting mode right now. Also if anyone knows whats the best company out there to get started on this, I would like that info as well.
Warm Regards,
Chris :D :) 8)
debt settlement will damage you report more than consolidation.D
debt settlement will damage you report more than consolidation.Do you have any payday loans?You can get a free consultation from this website.You just need to register,there are many here who have joined a consolidation program,including myself.It is the best way to go.If you start getting behind on your bills it will lower your score,so go for the consultation.There are some post here about the ill affects of settlement,maybe someone can give a link to those post.
debt settlement looks very bad in the credit report. The account
debt settlement looks very bad in the credit report. The accounts will be marked as 'settled' in your file and the creditors will keep you aside in most of the cases. Do not take a settlement program unless you are sure that you can't make even the lower payments set in the consolidation program and that you are looking forward to file bankruptcy. The payments set in the consolidation are much lower than the minimums that you pay to your creditors. Besides, the consolidation also reduces the total debt by eliminating the late payment fees.
There are many advantages of taking a consolidation program. You will be regular in your payments as you are right now and your accounts won't be at the risk of defaulting. The credit scores will always on the up side after each account gets paid off.
Settlement programs express that you were unable to pay the balance owed to your creditors and hence have settled for the reduced amount. Settlement remark can hurt you in the long run because creditors might assume that you will be the maximum risk if they grant you credit again.
Consolidation program will appear in your file but it stays as long as you are paying off your debts. Once the accounts are paid in full, it is removed from the file and you have a completely new credit file in front of your lenders. They will never understand that you ever took a professional help.
If you visit a lender while you are in the program, they might not extend the best credit packages to you as it reflects that you have taken a professional help for paying off the debts. But this is much better than if you are delinquent for a regular period and all your accounts are past due.
I guess you must discuss with the consultant more about this program. You will get most of your queries cleared while you are having counseling.
