Debt Settlements – Would You Take a Lower Credit Score to Eliminate Credit Card Debt?

Debts are headaches and they are really annoying. They grab your peace of mind as it always works on your mind that you are indebted. But do you think that it is your fault to be indebted? Actually it is not only your fault, but the world economy should be responsible for that. The world economy is in a tragic situation due to recession, thus the people are compelled to become debtors. But after becoming debtors, you should find a way out of it than blaming your self or the country.

There was a time that you had to pay the whole due amount along with the added interest, to the creditors. But nowadays you have options not to pay off the debt. The government and the creditors them selves have realized the fact that people are unable to pay off their debts. So they have decided to accept debt settlement.

Even though it can cause a loss for the creditors, it is better than a bigger loss of not receiving any amount. Once a consumer settles the debt, he has to pay a portion of the debt. This portion is decided by the creditor. But the consumer is not the person that goes and settles the debt with the creditor. There are special agents to render this particular service for you.

They are called debt settlement companies. These companies have the capability of reducing your debt up to 60-90 percent. Once you are handling a debt issue through a debt settlement company, you will not be troubled by the creditors sending numerous letters and annoying telephone calls.

There is another way that you can eliminate your debt, which you should be concerned about your credit score. That is eliminating your debt with the stimulus money that is provided by the government. You should maintain a lower credit score in order to get qualified for stimulus money. Because, it reflexes your financial instability, and your inability to pay off the debt.

If you maintain a high credit score and request for a debt settlement, you stand a lower chance to be selected. So keep in mind to maintain a lower credit score, if you are willing to settle your debt. After settling the debt, you can think of ways how to increase your credit score.

Source by Rebecca Wimaladasa

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