While getting out of debt sounds great, consumers using debt settlement companies often fail to realize the dangers. You may be able to reduce your debt but the negative impact on your credit scores may not be worth it.
Once a collection account lands on your credit reports it can stay for up to 7 years from the date of the original account’s default regardless payment. Paying a collection account does improve credit scores but only under FICO 9 scoring system.
The minimum payment on credit accounts should be used as a convenience only because paying only the minimum could mean you end up paying 3 times the original purchase.
Medical debt can seriously damage credit but by July 1, a significant number of consumers will have medical collection debt removed.
You may be able to negotiate collection debt for much less than what is owed. Read on to discover some tips for negotiating your debts.
The FDCPA does not clearly set standards as to what is proper debt validation but the court’s have made rulings that can be used as guidelines.
Choosing the right credit counseling agency can make the difference in reducing your debt or digging yourself further into debt.
Debt settlement can hurt credit scores because having late payments are essential to settlement, creditors are motivated to settle when you have multiple lates
Debt validation is a powerful tool consumers have to use against unfair debt collection. It forces a debt collector to prove you owe the debt.
A simple debt validtion letter example that can be used to request debt validation from a collection agency.
CreditMashup is committed to helping you make smarter financial decisions by presenting you with the best information possible. We are able to present this information to you free of charge because some of the companies featured on our site compensate us.
Compensation may impact how and where products appear on this site, including the order in which they may appear within listing categories.
While CreditMashup does not feature every company, financial product, or offer available, we are proud that the information, reviews, guides, and other tools found on our site are entirely objective and available to you free of charge.
Our #1 priority is you, our reader. We will never ever recommend a product or service that we wouldn’t use ourselves. Our reviews are based on independent research.
What does this mean for you? It’s simple: we will never steer you in the wrong direction just because a company offers to pay us.
