Wednesday, January 4, 2012
Will Paying My Bills Improve My Credit?
I am getting a lot of pressure and of course they are lying about taking me to court -- all of this coming from a five year old credit card with a major bank. Of course, by now they have added a ton of other charges for late fees, attorney fees and who knows what else! They are offering me a settlement where I would pay $4000 of the $6000 they are saying I owe them. It should never have been more than $2000 in my mind!
Can you ever wheel and deal with these people--say like I offer $1000?
Seeking Credit Answers
Here are my initial thoughts. Yes, you should pay old debts! I believe that if we make a debt, we should pay a debt. Still, there are a couple of other things to consider regarding your credit and overall financial health. First, paying off old debts on demand in this fashion won't necessarily improve your credit. In fact, though there is some relation to paying off debts and improving your credit, they are not as related as you might normally think. That takes a different kind of work. When it comes to improving your credit, there is an order and priority you will want to pay attention to.
Now, to the matter of negotiating settlements, ABSOLUTELY take advantage of settling at a lower amount any time you can. There is nothing unethical or unbusinesslike about asking your creditors to reduce a portion of your debt or otherwise make payment arrangements for you. My experience is that many companies will work with you and accept anywhere from 50%, 40% or even as low as 30% of what you owe. It never hurts to ask and anything you save can be put towards other bills and debts where they are less forgiving.
I' would be glad to consult with you about what debts to consider paying first. Some things may never come of your credit report, however, unless your creditors are legally forced to abide by the law and report information such as payoffs accurately. For that kind of help, you will need a professional. When you're ready for a free consultation, give me a call at 832-566-2001 or e-mail email@example.com! Please join us on our Rising Point Solutions Facebook page, too!!