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I joined a debt consolidation firm. Will this ruin?

Date: Thu, 03/02/2006 - 04:38

Submitted by anonymous
on Thu, 03/02/2006 - 04:38

Posts: 202330 Credits: [Donate]

Total Replies: 6


I was reading a statement about making sure the creditors put PAID or UNRATED on your score. If they put SETTLED then you are hurting. Why would they put that on there to begin with.

I had to join a debt consolidation because of a tempory problem and now it is fixed. I am ready to pay off the debts I have enrolled in the D/C company. Do I need to call each creditor and make sure they are going to put a PAID or UNRATED on my accounts or what do I do?

HELP :(

James


Quote:

If they put SETTLED then you are hurting. Why would they put that on there to begin with.


Hi James! I know when you have 'charge offs' on your report and collection agencies are involved, sometimes they will offer you 'deals' to settle where if you pay right now today-they will reduce the debt. And in doing this, sometimes they report the debt as 'settled'---which hurts you more than a 'paid charge off', because you settled. hope this makes sense.


lrhall41

Submitted by imkimssister on Thu, 03/02/2006 - 08:44

( Posts: 1301 | Credits: )


James,

The counselor from the debt consolidation company is supposed to do that on your behalf. You should talk to your counselor ASAP and see what they recommend.

As the other members have mentioned earlier, if the accounts are reported as ???settled' it might hurt your credit. It is your consolidator who tries to update your credit file in your favor. Credit repair is there in the list of benefits of debt consolidation as well-

http://www.debtconsolidationcare.com/benefits.html


lrhall41

Submitted by stanley on Thu, 03/02/2006 - 12:53

( Posts: 1639 | Credits: )


James, this only applies if you are going the debt settlement route. If the "consolidation" company you are working with has you on a debt management plan, then you have nothing to worry about as far as the accounts being reported as settled. This is only a problem if you are settling the debt by paying less than 100 percent of the amount you owe.


lrhall41

Submitted by dmj210 on Tue, 03/21/2006 - 09:03

( Posts: 123 | Credits: )


Always try to get your accounts reported as ???paid' or ???paid as agreed' instead of ???settled'. Prospective creditors usually do not prefer settlement because you pay lesser than the original debt.

debt consolidation helps you get your report updated as paid or paid as agreed and improves your credit rating. You can go through the e-book to know the details of credit scoring-

http://www.debtconsolidationcare.com/books/credit-score.html


lrhall41

Submitted by stanley on Tue, 03/21/2006 - 15:25

( Posts: 1639 | Credits: )


If you are with a consolidation company and not a settlement company, they should be paying your creditors monthly. They should also have no problem with you paying off your debts in full if you are ready to. Just call your counselor and let them know of your intentions (again, this is only for a consolidation company, not settlement) and they should let you know how to proceed.


lrhall41

Submitted by dmj210 on Wed, 03/22/2006 - 09:23

( Posts: 123 | Credits: )