Credit is repairable. It’s important for consumers to understand that concept. Too many times we will hear that prospective clients refuse to enter into a settlement arrangement with a creditor for fear of negative implications to their credit score. Yes, that three digit credit score is often equally as cherished as your beloved vehicle, pooch, or other prized possession. So, hurting your score by entering into a settlement arrangement with a creditor is understandably a hard decision. Well, lets look at the bright side.
Settling with a creditor happens when arguably you are in not the best financial position. Meaning; you might be struggling at this time of your life…which is already forcing you to have a difficult time meeting your payment obligations. Perhaps you may have already been delinquent on your payments in the past…perhaps you are indeed meeting your minimum payments on time, but are near the limit on cards; which have now been rendered virtually unusable.
Often, your credit score will already reflect the negative nature of how and when the bills are being paid. So, why settle? Settling for less than the entire balance with a creditor may provide you with that fresh start in life that you so desperately need. Settling will afford you to pay back significantly less than what you might’ve originally borrowed, purchased, and spent. Settling will allow you the possibility of forever eliminating your credit card debt in a much shorter time period than had you continued to voraciously spend, spend, spend.
Finally, though your sacred three digit friend may suffer some unfortunate negative consequences…once you get back on your feet and get your finances in order your credit will begin the slow and arduous task of coming back to life. Fear not.