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My FICO Credit Score Is 670 Can I Consolidate $25,000 Credit Card Debt?

April 16, 2012 0 comments

by Lizzy Bale

Can I Consolidate A Large Credit Card Debt With A FICO Score Of 670?

Debt consolidation can be an effective way for you to get the relief you need. However, you have to meet certain qualifications to consolidate your debt in most cases. You may have a hard time qualifying for a consolidation loan if your credit score is lower than 700. The interest rate you pay will be much higher even if you do qualify for a loan. However, what happens if you consolidate through a debt settlement?

No Credit Check Required

The best reason to pursue consolidation through a debt settlement plan is the lack of a credit check. Debt relief services are not interested in what your credit score is. They are interested in helping you reduce the amount of debt you currently owe.credit card debt consolidation with 670 FICO credit score

Your creditors are more concerned with your ability to pay them as opposed to your credit score. Their goal is to get as much money as they can from you. Negotiating with a debt relief service is not going to be a big hurdle to overcome. This makes it much more effective for you to consolidate your debt with a negotiated settlement.

Does Settlement Hurt Your Credit?

A debt settlement plan may temporarily hurt your credit score. What you should understand is that your score will only be lowered for a short period of time. This drop will also be countered with a better debt-to-income ratio.

Having less debt to deal with is going to help you much more in the long run.

It can be relatively easy to improve your credit score after a debt settlement plan. Having less debt to deal with makes it easier to pay off any new loans you may take out. The key is to be smarter with your money in the future. Changing your financial habits allows you to use credit without ruining your financial stability. Applying for a secured line of credit is a good first step toward repairing your credit after a settlement.

Settlements are a much better option than bankruptcy. Bankruptcies will stay on your credit report for as many as 10 years. Going this route will also make it potentially harder to find a job to help pay your remaining debts. Obtaining decent housing is also harder when you decide to file for bankruptcy.

Can My Credit Card Debt Be Settled?

Yes, your credit card debt can be settled with your creditors. Debt relief services can significantly reduce the amount of money you owe through a settlement offer. Expect to pay about half of your remaining balance on average. Interest rates and other fees may be removed as well.

Those who have larger debts and low credit scores are exactly who debt settlement plans were designed for. Stop dealing with a debt as large as $25,000. You could be saving thousands of dollars each year simply by settling your debt as soon as possible.

Your credit card debt can even be settled if the account is currently in collections. The good news is you can offer a collections agency even less than you would your original creditors. Debtors all across the country can have their debt settled for as little as 10 percent of the balance for example. A few pennies on the dollar is well worth getting rid of all the creditor phones calls and harassment.

People with high levels of debt should consider settling that debt right away. Find out right now how settling your debts can help you. DebtConsolidationUSA.com offers programs that can have you out of debt in as little as 24 months. There are never any fees until your account is settled to your satisfaction. You may also call is to get advice as to how you can use a debt settlement plan to lower your debt.


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