Q. How does debt negotiation affect my credit rating?
A. Debt negotiation will have a negative impact on your credit. How much your credit declines dependson your original circumstances when enrolling in the program. When the settlement is complete you should receive a settlement document that you will then send to the credit bureaus showing that is it “settled”, “paid”, or “settled and paid less than the full amount”. Unfortunately your credit will get worse before it gets better because as your accounts are being negotiated your score will get a few dings. The good news is that by the time you finish the program you should be back on track!
Q. Do all of my debts qualify for the program?
A. It will not work with any secured loans. What is a secured loan? Well that’s any loan that is tied to any sort of collateral such as a car, house, or that expensive RV you just bought. The other type of debt that will not qualify for debt settlment is government backed student loans or income taxes.
Q. Why can’t I just negotiate my debts on my own?
A. Negotiating your own debts CAN be done. I’ve done it several times in the past many years ago and I was able to get the balances down on my credit cards. The one problem is that the Creditoirs are well trained in dealing with thousands of people who call in everyday asking the same thing that you’re asking for. They’ll draw out the negotiation process or try to play hardball with you. When I negotiated my on debts it was a VERY long drawn out process and left me feeling drained when it was all over.
Thats all I have for now but if you guys have anymore questions feel free to e-mail me @ i.closem@gmail.com.
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