Do you find yourself drowning in debt with no relief in sight? Are you tired of making minimum credit card payments on your bills only to see the outstanding balance barely go down if at all due to your high interest rates?
If you are struggling to get by living paycheck to paycheck and want to get a handle on your overwhelming credit card bills there are money solutions to your debt problems.
Before you can decide what to do about your credit card bills you have to answer these two questions:
1. What is more important to you – having a lower interest rate OR slashing your outstanding credit card balance by half?
2. What is more important to you – having a good credit score and barely getting by on your bills OR having a low credit score temporarily and being credit card debt free?
How you answer these 2 questions will help determine our debt consolidation advice.
If all you want is a lower interest rate, a good credit score and being able to keep up with your minimum payments then consolidating your debts and using settlement is not for you. You can try consumer credit counseling and hope to get ahead on your bills.
But what good is a good credit score if you have maxed out credit cards and have to borrow from one card to make the payment on another?
All the financial gurus tell you that you must have a high FICO credit score. But financial gurus like Suze Orman have a vested interest in promoting FICO scores because she is affiliated with Fair Isaac Corp. So of course they want to get you to believe that having a high credit score is all you need to worry about.
But if you truly want to get out of debt without filing bankruptcy then you have to put aside the idea of a good credit score for a short time.
Debt consolidation through settling with your creditors will allow you to slash your outstanding credit card bills by 50% on average in as little as 24 months.
This is an actual reduction in the principal balance that you do not have to repay. When you are drowning in credit card debt this is the best debt relief program you will find that does not involve filing a bankruptcy petition because you are insolvent.
The only way to accomplish this is by withholding your normal credit card payments each month to build up a settlement fund to settle with your creditors or debt collectors when the time comes.
This will TEMPORARILY hurt your credit score rating.
How long does debt consolidation through settlement hurt my credit score rating?
Yes it is true, settling your debts with your creditors will hurt your credit score rating and you will have a low FICO score for a short period of time. But this time period is much shorter than if you had filed for bankruptcy which can haunt you for 7 to 10 years or more.
Once you have resolved your debt problems with all your bill collectors you will be able to rebuild your credit report and fix your credit score with on time payments from then on.
You can start improving your all mighty FICO credit score in as little as 6 months after you have successfully completed your credit consolidation program.
Then you will have a much smaller debt obligation if any and you will be able to have money in your bank account each month instead of seeing it all go to your creditors.
Using credit consolidation through settlement you will no longer have to deal with overwhelming credit card bills
When you settle for less than full balance owed you save money and avoid worrying about just getting a lower interest rate. A reduced interest rate pales in comparison to a 50% reduced balance.
If you are tired of drowning in debt, talk to a debt specialist who can match you with the best debt relief programs you can afford.