Don’t be afraid to settle and close your accounts so that you can be in a better financial situation in the future.
Credit is repairable. It’s important for consumers to understand that concept. Too many times we will hear that prospective clients refuse to enter into a settlement arrangement with a creditor for fear of negative implications to their credit score. Yes, that three digit credit score is often equally as cherished as your beloved vehicle, pooch, or other prized possession. So, hurting your score by entering into a settlement arrangement with a creditor is understandably a hard decision. Well, lets look at the bright side.
Settling with a creditor happens when arguably you are in not the best financial position. Meaning; you might be struggling at this time of your life… which is already forcing you to have a difficult time meeting your payment obligations. Perhaps you may have already been delinquent on your payments in the past… perhaps you are indeed meeting your minimum payments on time, but are near the limit on cards; which have now been rendered virtually unusable.
Often, your credit score will already reflect the negative nature of how and when the bills are being paid. So, why settle? Settling for less than the entire balance with a creditor may provide you with that fresh start in life that you so desperately need. Settling will afford you to pay back significantly less than what you might’ve originally borrowed, purchased, and spent. Settling will allow you the possibility of forever eliminating your credit card debt in a much shorter time period than had you continued to voraciously spend, spend, spend.
Finally, though your sacred three digit friend may suffer some unfortunate negative consequences… once you get back on your feet and get your finances in order your credit will begin the slow and arduous task of coming back to life. Time especially heals most credit wounds, so fear not. Taking a step backwards to take three steps forward with regard to fixing your financial future and ultimately your credit score should be the top priority.
Closing your accounts and settling with your creditors will help you to have mextra income that could not have foreseen prior to settling. Closing and settling your accounts forever eliminates all of that interest that you would have otherwise been paying for possibly many years to come. As the saying goes, “the only thing to fear is fear itself.” Get out of debt once and for all.