Your credit score can determine where you live, what car you can drive, how you live and even in some cases your employment.
About ten years ago, I got myself into deep financial credit card debt. I was in such dispare that the only thing I did was absolutely nothing. Well let me tell you nothing doesn’t work and either does trying to ignore it or just paying the bare minimum payments.
One day I decided enough was enough and I started looking around at my options. I was tired of baring the cross of bad credit and cringing every time someone had to run my credit report. So I looked at my options, charge offs, bankruptcy or debt settlement programs. The first one was charge offs, I had a few of those but they do not go away like people say that they do. It takes over seven years for charge offs to clear your record and in some cases your creditor will sell your information to agencies. They will call you and try to collect the debt, they even add interest to the original charges.
Bankruptcy would clear all of my debts and in a year or so my credit would start to rebuild itself slowly. The bankruptcy stays on your credit however for up to 7 years and it costs anywhere from $1,000 to $3,000 depending on your debt and where you go to file.
Debt settlement, is another option where you work with your creditors and make a deal on lumping your debt into one large payment. This option means you can pay up to 50% less in some cases to the creditor what you originally owe and get it paid off. Once you pay off your debt to your creditor you get a letter proving the debt was paid. The creditor then submits this information to the credit reporting agencies and it appears as a paid debt on your credit report. This can show up within one to three months of the debt being paid on your credit and start to increase your score.
If you are not able to work directly with your creditors or have a large amount of free cash for large debts to be settled. You can then work with debt settlement agencies that are set up with programs to assist you in saving money to pay off your debts. You can have your debts paid off in as little as 24 to 48 months. When you work with a debt settlement agency, you want to make sure that they are the real deal and have experience in handling credit card companies.
When selecting a debt settlement agency do your homework, check out their website, business, testimonials and make sure that they have the legal experience to help you. One company that I have heard great things about from a friend is a company called The Law Office of Cockurn & Associate LLP. This firm is run by a legal attorney Sheila Cockburn based out of Canada. Ms. Cockburn, is a certified debt specialist who helps clients in both Canada and the United States. She has over 8 years experience in debt litigation and is a member of IAPDA (International Association of Professional Debt Arbitrators). Ms. Cockburn and her team can help get you out of debt the right way.
Speaking from personal experience, I can honestly tell you that debt settlement saved me and my credit within six short months. My credit score improved dramatically and was better than it had been in over ten years. I wish I would have looked into this option sooner. I highly recommend this to anyone who is in serious debt and wants a positive way out to get back to living a stress and debt free life.