Debt Elimination Hints - How to Get Your Credit Score Back on Track After a Debt Settlement?
Critics of debt settlement who speak of credit score and the negative impact of debt settlement on the credit score are the same as Marie, the French princess who advised peasants to eat cake when they ran out of bread.
When you are one step away from a decision that will destroy your financial life and make you the laughing stock in front of your neighbors and colleagues, talking about credit score simply does not make sense.
What makes the situation even more laughable is that there are specific ways to improve your credit score after one has opted for settlement.
Just log onto the web and check out the statistics.
Settlement companies have settled billions of dollars of debt for millions of dollars during the past year.
Millions of individuals who otherwise would have opted for bankruptcy have a secure financial life today.
Do you think all those of people are doing nothing about their credit score? The best part is that the seed of recovery from debt settlement is sowed in the debt settlement process itself.
Once you have brought down debt by as much as forty to seventy percent your credit score will plummet to sub prime borrower status.
That is actually a good thing because this will discourage you from getting any additional debt.
You can focus on managing your finances and repaying the remaining amount owed to the lenders.
Once your score comes down, each and every financial repayment that you make on time and in a disciplined manner will work in your favor.
You have the obligation of paying the insurance premium on time.
However, your credit score will increase every time you do so.
Repay the remaining thirty percent on your credit card or unsecured debt and your credit score will improve.
Get a secured credit card or prepaid credit card and use it wisely.
Start from the scratch again.
Do not think that your score has fallen from 600 to 400.
Rather, look at it as a score that ought to have fallen to 200 but still stands at 400 due to settlement.
Once you adopt this approach, attitude towards debt settlement and improvement of score will automatically change.
Once you think positively, you will find that your score is constantly rising.
Lenders will not ignore this improvement.
The fact that you settled debt will work against you.
However, the drastic rise in the score will work in your favor.
When you are one step away from a decision that will destroy your financial life and make you the laughing stock in front of your neighbors and colleagues, talking about credit score simply does not make sense.
What makes the situation even more laughable is that there are specific ways to improve your credit score after one has opted for settlement.
Just log onto the web and check out the statistics.
Settlement companies have settled billions of dollars of debt for millions of dollars during the past year.
Millions of individuals who otherwise would have opted for bankruptcy have a secure financial life today.
Do you think all those of people are doing nothing about their credit score? The best part is that the seed of recovery from debt settlement is sowed in the debt settlement process itself.
Once you have brought down debt by as much as forty to seventy percent your credit score will plummet to sub prime borrower status.
That is actually a good thing because this will discourage you from getting any additional debt.
You can focus on managing your finances and repaying the remaining amount owed to the lenders.
Once your score comes down, each and every financial repayment that you make on time and in a disciplined manner will work in your favor.
You have the obligation of paying the insurance premium on time.
However, your credit score will increase every time you do so.
Repay the remaining thirty percent on your credit card or unsecured debt and your credit score will improve.
Get a secured credit card or prepaid credit card and use it wisely.
Start from the scratch again.
Do not think that your score has fallen from 600 to 400.
Rather, look at it as a score that ought to have fallen to 200 but still stands at 400 due to settlement.
Once you adopt this approach, attitude towards debt settlement and improvement of score will automatically change.
Once you think positively, you will find that your score is constantly rising.
Lenders will not ignore this improvement.
The fact that you settled debt will work against you.
However, the drastic rise in the score will work in your favor.
