| Debt Settlements Number One Factor |
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| Written by Don Wilson |
| Tuesday, 05 October 2010 18:58 |
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There are a lot of factors involved with settling debt for the lowest amount. I will show you the number one most important factor involved in debt settlement. Furthermore, I will show you the best way to use it to your advantage.
There are a lot of factors involved with settling debt for the lowest amount. I will show you the number one most important factor involved in debt settlement. Furthermore, I will show you the best way to use it to your advantage. Settling debt is all about gaining leverage over your creditors. The more leverage that you can gain the more money you can get written off of your bill. With that in mind, you need to know that some factors in debt settlement you can control and some you just can't. The big thing to know is even if you can't control a factor, you can still use it to your advantage. Whether or not your bill is going to be reported to the credit bureaus is important. This is a factor that you wont be able to control. Putting a debt on your credit report is leverage for who you owe money to. We will look at it from a collection debt view point. It's important to know that if your bill is at a collection agency and has been there for over two months, and it's not on your credit report, it won't be going to your credit report. As we went over earlier, the ability to report something to your credit is leverage for a creditor. If it was allowed they would do it right when they got the account. They can't do this because the Fair Credit Reporting Act (FCRA) makes them allow a 30 day validation period. This period gives you time to dispute a bill before it makes it to your credit. They can't put your debt on your credit during this time because they have not validated it. When the 30 day period is over and the next credit reporting cycle comes around, you can bet that your debt will be reported to the credit. What you want to do now is pull your credit report. If you have a bill in collections for over 60 days then it's not going to be on your credit if it's not already there. There are some scenarios that this isn't true such as workman's compensation cases, but generally it's not going to end up on your credit. When you offer a your settlement amount to your creditor or to the collection agency, if it's not going to your credit, it should be a smaller amount. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. If wish to discover how to Stop Collection Calls head over to http://www.beatdebttoday.com and begin learning about the Debt Secrets. |