building credit after debt settlement program

The two threads given below will answer the queries you have in mind.

http://forums.debtcc.com/forums/comparison.html

http://forums.debtcc.com/forums/credit-check.html

I will always suggest you to stay away from debt settlement. It is definitely the last resort before filing bankruptcy. The term 'settled' appears in your credit status and it reduces your financial worthiness. Your credit scores won't increase at the same pace as they should have if Debt settlement4 is opted to settle the financial problems. This program will reduce the debt largely but at the same time, it will tarnish your credit ratings.

As you are looking forward to improve your credit ratings, you can do it with a little perseverance and regular payment efforts. If you can manage to pay your debt on your own, this is the best thing you can do for your credit. Otherwise, your next best choice will be to go for the consolidation program.

Any lender who will extend you credit in the future will look into your credit scores first. Credit scores can increase rapidly if you follow the tips mentioned in the thread above.

We have over $30,000 in debt, so we see this as the easiest way to pay it off and start over from scratch. Only part of our debt is going to be settled...the larger accounts. The other accounts we intend to pay in full. This is the only way we thought we could arrange to pay everyone and not have to file bankruptcy, which we almost did. I would rather pay something to them than nothing at all. So, some will be settled, and some will be paid in full. I am hoping this will help our credit rating a little too. Thanks for the info.

So, what you have finally decided, I understand that you will be using consolidation as well as settlement program to pay off the total debts.

If this is the picture, then credit scores won't show any dramatic changes. It's because whatever repair you will be doing through consolidation will be ultimately damaged by the settlement program. I can even say that the damage caused by taking the settlement program will much more than expected. This program will give you the R9 ratings with the lowest scores. I am not scaring you but I need to show you the hard facts of using this program. Basically, most of the people use the settlement programs because they see the total amount reduced largely. But if you think two steps ahead of time, the amount of money that has been saved now will be less than the amount of money spent later. How??? Your scores will get lower because of the termed 'settled' in your CR..right?? Now, lenders will be shaky in extending you any credit since your past payment history is not good enough and you have used a type of program that was designed to settle the debt. Needless to say, that you will lose the chances of getting new credit and if you get it, probably those will be tucked with the highest rates of interest.

I contacted a debt settlement program. It seemed like a good idea while I was talking to the agent. I starting reading over the paper work and got a little scared. They recommend that you get a lawyer in case one of the creditors tries to sue you. It seems that you put so much a month in account for the debt settlement company. Then they try to arrange a settlement with each creditor. This could take a couple of years. Wouldn't that hurt your credit even worse? That is why I chose debt consolidation instead.

Actually I am using an attorney to do the debt settlement, so if they try to sue me I have respresentation already. It could take years, but if it did, I wouldn't do it. The reason I am doing this is because I will have enough money soon to pay off creditors, but only if I settle on some of the higher accounts. I want all my debts paid off, I know settling does not sound good to some, but it is better than filing bankruptcy. Otherwise I would be paying on these high cards for 10 more years.

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Guest,

You are right. Some creditors consider the notation ???settled' to be a negative one and think it as your discredit. Whereas ???paid in full' status will make your credit score better.

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