Debt,settlement,vs.,credit,cou finance, share, loan Debt settlement vs. credit counseling
Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track
It is a common mistake made by a lot of people to believe that they are both the same. But believe me, not matter what anyone says, they are not same. Debt settlement allows you to pay only 60-70% of your debts while you pay 100% of your debts with the help of consumer credit counseling. One thing to always keep in mind while going foe credit counseling is that the revenue collected by these advisors comes for creditors. It is therefore possible that these people might not do the very best for you keeping in mind their profits.One very important thing to keep in mind always is the credit score. Your future credit report has to be good. No doubts that credit counseling will help you get rid of all your debts, though it will take time, it can hurt your credit score. Nothing wrong will happen to your FICO score but the credit report will surely have a bad impact because of it. Lenders normally avoid people who have taken a consumer credit counseling before and hence it damages your future credit.Now a very common question asked here is that if credit counseling damages the credit, what impact does debt settlement has on it? Is debt settlement the same when it comes to leaving an impact on credit report? Well actually until and unless the payment is made, your case is not quite sorted out. However your credit report shows the full payment once the debts have been settled. The companies that help you in debt settlement do not report about your debts to the institutions. You can be fooled by any creditor but these companies can be trusted with eyes shut closed.There is just no way that you can escape debts without having a bad impact on your credit score. But think about it, isnt it better to pay full amount rather than having CC on the report? Bankruptcy is the option one should least consider. While applying for loans in the future, creditors would prefer if you have tried and put some efforts in paying off the debts rather than just filing for bankruptcy or joining credit counseling.
Debt,settlement,vs.,credit,cou