Debt Settlement – What The "Experts" Don't Tell
You
Author: Marie Megge

Recently I had the opportunity to listen to a local radio
personality talk about the process of debt settlement (debt
negotiation). While listening to this so-called financial
"expert" I became rather frustrated due to some very relevant
omissions in his message.

Allow me to take a few moments to cover some concerns people
may have regarding debt settlement and the consequences those
who follow this path may face. For instance, the radio
personality to whom I was listening was adamant about warning
his listeners that their credit score would no doubt take a
beating and be reduced significantly. Is this the truth? Yes –
if you've been paying your bills on time for several years and
you decide to enter into a debt settlement program, your credit
score will be negatively impacted.

It makes no sense, but creditors aren't interested in
negotiating your debt (or even willing to work with you) until
you're several months delinquent, which will obviously have an
affect on your credit score. But, there's a very good chance
that your credit score isn't as high as you may think it is if
you're carrying high balances, or have had even one late
payment.

If you're concerned with your credit score and how it may be
affected, you should probably sit down and re-prioritize. Let's
be optimistic and assume your current credit score is 700. Let's
also be realistic and take a serious look at why you're
considering debt settlement; it's probably because your monthly
credit card bills are increasingly becoming a burden and it's
difficult to make it through each month with your head above
water. If this is the case, how is having a decent credit score
beneficial? The main "perk" of having a good credit score is to
obtain credit. Do you really want or need more of that?
Probably not. So, if your credit score is reduced for 6-12
months, big deal, right? This option is much better than your
alternative, which is being strapped with debt and high monthly
payments for the next several years.

So, yes, the "experts" may have a portion of their message
correct, but it's so important to take a good look at the
larger picture so that you can clearly understand all of your
options and how they affect your overall well being in the long
run. Picture yourself five years from now; you can either be
free of debt and living comfortably, or you can be exactly
where you are right at this very moment – still owing several
thousand dollars to your creditors.


About The Author: Marie Megge is a consultant in the credit
services industry. Over the past several years she has assisted
many individuals in resolving their debt-related matters. For
more information regarding credit and debt visit
http://www.donaldsonwilliams.com