The longer old debts have been dragging down your credit score, the more anxious you likely are to settle them, especially if you have cash saved up to make some deals. But before you jump in with both feet to settle old debts, get to know the basics first.
It’s too bad these debt settlement myths are still floating around out there, steering people in one wrong direction or another. Don’t get caught in that trap. Whether you’re considering settling a debt, or already decided against it, do yourself a favor and get the facts first.
If you’re just 30 to 60 days late on a debt, all of your efforts should go toward getting that debt current. Only when it’s 60 to 90+ days late should debt settlement be considered. And even then, it’s just that – a consideration. Find out when settlement may be a good idea.
If you have debt in collections, and are in no position to pay this debt in full, why not try paying what you can? Yes, it’s easier said than done, but doable, and you don’t need a debt relief company’s help. Here’s how to settle your debts yourself.
Let’s say you use DIY debt settlement techniques and negotiate a payoff amount with a collection agency or creditor. What’s essential for you to understand is that settling a debt does not automatically remove the negative listing from your credit report. You have to negotiate that, too.
There is nothing a debt negotiation company can do for you that you cannot do for yourself. And that’s a good thing since they charge good money that you could be putting toward paying off debt instead. But the problems with debt negotiation companies don’t end there. Get the facts about the potential dangers of these unnecessary programs.