What debt program will hurt your credit?
Debt programs are there to help the consumer not harm them. One must understand that there are different types of debt programs and each consumer has their own needs. It is very important to know these debt programs and what they can do to help you with your needs. Find a debt program that is professional and eager to listen to what your debt issues are and how they can help. A one on one approach always brings a better outcome when doing a debt program. Any professional company that has the consumer best interest in mind will assign one advisor to one consumer making it a more personal matter. No one wants to tell the situation to a different person each time they have a question.
There are many types of debt programs but the most popular would be the debt consolidation program and the debt settlement program. Each program is extremely different and must be understood. The debt consolidation program is for those who are current or just starting to fall behind on their debts. It is not a loan (this would just put you in more debt) it is a way to get on new term with the creditors without harming their credit. The consumer usually gets a lower minimum payment, interest rate and shorter debt length. Probably something that you have tried on your own but was not able to achieve much this is understandable because these consumers feed on ones fears and usually don’t comply. The consolidation companies are able curve around these tactics and achieve the goals that need to be achieved. The debt consolidation program is not reported to the credit bureaus and will not have a negative effect on the consumers credit score.
The other debt program that can benefit consumer is the debt settlement program. This program is for those consumers who have fallen behind, in collections or can no longer pay their debts. The debt consolidation program will show on one credit until they have paid their debts, but it is in no way close to what bankruptcy can do. Bankruptcy will stay on your credit report as settlement does not. A consumer has a chance to pay off their debts and restore their credit after the debts have been paid. When doing debt settlement ones balances are cut in half or more and the consumer’s receives an extremely lower payment as well as debt length. Interests rate are removed making it an option for the consumer to pay more or pay off the debts. Chances are that you did not mean to default on the debt and just need a chance to get caught up. Later finances may look better and the consumer can do what needs to be done to resolve their debt problems. Although each consumer has different needs and different debts there are very reward able debt programs out there. There is no reason the stay in debt when there are ways to fix each and every problem.