When you are trying to repair your credit, one of the first things that you should try is to get your creditors to agree to a debt settlement. What is a debt settlement? Basically, you will call your creditor and let them know that you want to pay off the account and ask them what the lowest number they will agree to. Most of them will agree to a lower payment amount than what shows on your statement.
I have a friend that came into some money through an inheritance and owed a rather large credit card bill – over $9,000. she called the credit card company to let them know that she had some money that she could use to pay off the card but she couldn’t pay the full $9,000. After some negotiation, they agreed that if she would pay $6,400, the debt would be settled. she made the payment and her credit score rose almost immediately.
Not all companies will agree to debt settlement, but when you can find one who will, it can go a long way to repair your credit. Be honest with the company and tell them what you have to offer. If it is acceptable to them, the settlement of the debt will be finalized and you will be on your way toward credit repair. I have personally seen companies accept “pennies on the dollar” for debts. In fact, I personally got a bill cut in half on my own credit this way.
There are other companies besides credit card companies who will agree to debt settlements. One of the biggest reasons that people get into credit problems is due to overly huge medical bills. These cannot be helped oftentimes and they can stack up very quickly causing huge blemishes on your credit report.
Believe it or not, you can make a debt settlement agreement with the medical companies that can go a long way to repair your credit. Check with the hospital to see if they have any special programs for people who are financial difficulty because of an illness that isn’t covered by insurance or for people who don’t have insurance. Almost all medical providers realize that medical care is expensive, so if you show them your total financial picture and at least try to make some type of settlement on your debt, they will be willing to accept it. Keep in mind that some won’t, but there’s really no harm in trying, now is there?
Using debt settlement agreements as a way to repair your credit is just a smart way to go. Make the phone calls and be prepared to negotiate. Many people will work with you if you show a good faith gesture to try and make your debt right through a settlement which will repair your credit in no time at all!
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