Debt Settlement is a great alternative to bankruptcy. What shows up on your credit report are the late payments and the accounts being sold to a collection agency. That information can only stay on your credit report for 7 years per the Fair Credit Reporting Act. Bankruptcy can stay on your report for 10 years after the time you filed per the Fair Credit Reporting Act. Not only will it follow you for 10 years on your report but most employment applications and federal paperwork they ask you have you ever filed for bankruptcy and if you say no, then you are committing a felony. So bankruptcy follows you for the rest of your life. The lenders looking at your credit file will be looking at your debt to income ratio, your debt to credit ratio, and your credit score. So debt settlement puts most people in a position where they can rebuild and have a fresh start in getting their credit rating where it needs to be. Either you can pay your bills or you can't. If you can't qualify for a debt consolidation loan then your choices are narrowed down a bit. Either Credit Counseling (which I have also heard too many times that it looks just like bankruptcy to lenders) or Debt Settlement (which you say you heard looks like bankruptcy to lenders). Or one can go out and get a part time job and pay their bills-good option, most people just don't want to do it and either are looking for someone else to blame or an easier way out.
Debt Settlement isn't for everyone and it is an aggressive style approach to getting rid of your debts, but it does work and gives a lot of consumers another option to consider when dealing with their debts.
Pay for Delete letters could be a process for some debt settlement companies. However the FTC cracks down on companies that offer debt settlement and credit repair. So promising any type of pay for delete agreements that work cannot and should not be done, because sometimes they work and sometimes they do not. It depends on the collections agency. Some collection agencies have policies against this.
The entire debt settlement process is based on "negotiations" so nothing is guaranteed or written in stone, but it generally does work for the majority of people. The only way a settlement company could guarantee any settlement or left over remark is if they actually own the debt as well. (if they own the collection agency)
As far as the pay for delete working or not, sometimes it does sometimes it doesn't. But during the negotiations process most companies will try to negotiate some type of positive remarks left on ones credit report whether it be thru pay for delete letters or just good ol fashion negotiating, it depends strictly on the settlement company.
debt settlement
Hi CAG,
Thanks CAG for such an informative post on debt settlement. All the details will definitely help all to pay off their debts.
What about the "Pay for delete" agreement during the debt settlement program?
I am not sure if debt settlement is the way I would go, too many times I have heard that it is viewed just like bankruptcy or in a similar light.
bankruptcy
Debt Settlement is a great alternative to bankruptcy. What shows up on your credit report are the late payments and the accounts being sold to a collection agency. That information can only stay on your credit report for 7 years per the Fair Credit Reporting Act. Bankruptcy can stay on your report for 10 years after the time you filed per the Fair Credit Reporting Act. Not only will it follow you for 10 years on your report but most employment applications and federal paperwork they ask you have you ever filed for bankruptcy and if you say no, then you are committing a felony. So bankruptcy follows you for the rest of your life. The lenders looking at your credit file will be looking at your debt to income ratio, your debt to credit ratio, and your credit score. So debt settlement puts most people in a position where they can rebuild and have a fresh start in getting their credit rating where it needs to be. Either you can pay your bills or you can't. If you can't qualify for a debt consolidation loan then your choices are narrowed down a bit. Either Credit Counseling (which I have also heard too many times that it looks just like bankruptcy to lenders) or Debt Settlement (which you say you heard looks like bankruptcy to lenders). Or one can go out and get a part time job and pay their bills-good option, most people just don't want to do it and either are looking for someone else to blame or an easier way out.
Debt Settlement isn't for everyone and it is an aggressive style approach to getting rid of your debts, but it does work and gives a lot of consumers another option to consider when dealing with their debts.
Pay for delete?
Aaron. Please elaborate on your question about "pay for delete"?
I'm not sure I'm understanding what exactly it is your asking.
reply
Hi,
Is "Pay for delete" agreement a common process in relation to debt settlement? That is, is it an inevitable part of debt settlement?
pay for delete
Pay for Delete letters could be a process for some debt settlement companies. However the FTC cracks down on companies that offer debt settlement and credit repair. So promising any type of pay for delete agreements that work cannot and should not be done, because sometimes they work and sometimes they do not. It depends on the collections agency. Some collection agencies have policies against this.
The entire debt settlement process is based on "negotiations" so nothing is guaranteed or written in stone, but it generally does work for the majority of people. The only way a settlement company could guarantee any settlement or left over remark is if they actually own the debt as well. (if they own the collection agency)
As far as the pay for delete working or not, sometimes it does sometimes it doesn't. But during the negotiations process most companies will try to negotiate some type of positive remarks left on ones credit report whether it be thru pay for delete letters or just good ol fashion negotiating, it depends strictly on the settlement company.
I hope I answered the question you were asking.
Best Regards,
CreditAllianceGroup
reply
Hi,
Thanks for the information. :)