When money gets tight and the consumer lose their job, then repaying unsecured credit card debt is hard. The consumer is holding on to make their monthly mortgage or rent payments and put food on the table for their family.
The consumer needs to explore a debt settlement program as an alternative. Debt settlement is a method by which a third party negotiates on behalf of the consumer to reduce and sometime cut in half their credit card debt. The consumer needs to understand how this program works and how it will affect their credit score.
What are the positives to this program:
• The consumer now has a plan to climb out of debt.
• The consumer has a timetable for getting out of debt.
• The consumers credit will improve overtime as the debt is negotiated.
• The consumer may not continue to face the harassing collection calls.
• The consumer feels better about trying to resolve their debt by not filing bankruptcy.
Every consumer worries about their credit score. This credit score is key for allowing the consumer to borrow whether to purchase a home, car or apply for a new credit card. So once the consumer starts on the debt settlement program, one of the key steps to helping you’re current score is to continue making all other payments on time, This means making your monthly mortgage, auto and equity line payments. It is important to continue meeting your secured debt obligations.
Contact Debt Free Partners today!
