Sometimes, an 8-hour job can not get you a decent paycheck. That is why if you are not taking a second job, you are probably on your way to a lending institution hoping to borrow sufficient amount of money for your needs. And in an instance like this, you have to be wise and knowledgeable on how you will be able to keep yourself away from debt trap. So to help you always make the right decisions for your finances, here is a comparison between credit settlement and credit repair.
The mantra: Prevention is better than cure
Doctors would always say that to be able to keep yourself away from the burdensome medical expenses, you have to take care of your health. This is also true for your finances, particularly when it comes to debt. The idea of debt repair is to "cure" the situation where you have already defaulted in your obligation. Here, the original terms of your loan are adjusted to make payment easier for you. The payment period is lengthened and in some cases, the penalties are condoned. However, this kind of situation does not do any good for your credit score. It in fact, worsens your credit rating – making it hard for you to obtain another loan in the future. So this is what makes debt settlement a better decision for you to make. When you are able to provide efficiently for the settlement of your debt, you will not have to worry about putting shame to your name and extremely, to your credit score. You will not have to go through the hassle of having to negotiate with the lender about the terms of the loan agreement just like in credit repair. What's more is that you are able to prevent nights of sleeplessness due to your dilemma bugging you all the time if you are able to settle your obligation in full.
When you obtain a loan, do not wait for the time that you will need a credit repair. Instead, be wise enough to responsibly pay off your balances. Through this, you can live your life free from the bondage of debt.