"I'd
rather go to bed without supper than rise in debt."
Ben Franklin
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Franklin Debt Relief, LLC is a member of (TASC) The Association of Settlement Companies. This trade association has developed a standardized industry disclosure for consumers.
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Credit Card Settlement and Help Call Today: (877) 274-1260 |
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Credit Card Settlement Credit card debt settlement is the most recent form of consolidation that has come to the forefront of debt relief options for consumers struggling with bad debt problems. Debt settlement can be an effective method for reducing the amount of debt you owe and help you get back on the right financial path. In addition, it now provides a shorter option for individuals trying to reduce their debt as opposed to the traditional alternatives such as consumer credit counseling and debt consolidation loans. However, it is important to stress that debt settlement may not be the best option for everyone struggling to clear their debt. Determining what debt relief option will be the most successful for you is an important first step to take before any decisions are reached. The only way to make an effective decision is to know the facts surrounding the approach to each debt relief method. In order to help you along in determining what the best route for you may be, take a look at the following circumstances in which debt settlement may or may not be your best debt relief option:1. You have been behind on your payments for some time now, and you know a monthly payment is not even an option unless it is reduced drastically. A debt settlement company can offer a more affordable payment, and since you are already behind, your payment history (35% of your credit score) will suffer regardless of whether or not you are enrolled in a debt settlement program. 2. You just recently fell behind on your minimum payments due to a financial hardship and you don’t anticipate being able to rebound. Many people either lose their job, have a medical incident, or are battling a number of difficult circumstances that prevent them from making their payments in the future. In this case, you are a better candidate for a settlement program because of the fact that you are suffering from a genuine hardship. The creditors will be made aware of this fact and know you aren’t simply ignoring the payments or being neglectful. 3. You are making your minimum payments, barely, and you anticipate falling behind in the near future. This depends on how long you anticipate falling behind for, and how much debt you have incurred. If the debt amount is very high, and you are unsure whether you will be able to make payments in the near future, then you are a better fit for a settlement program. If your debt amount is very low, and there is a chance you can make payments a couple of months down the line, you may want to reconsider your options. 4. You are making more than your minimum payments, you have never missed a payment, and you are just frustrated with those ridiculous interest rates your creditors are charging you. If you fall under this category, it is likely that credit counseling may be a better debt relief option for you. If you know you can pay back the debt in full without a problem in a short period of time, there is no need necessarily to take a negative hit to your credit to do so. 5. Are you buying a home or purchasing a vehicle in the next year or so? If so, debt settlement may not be the best choice. Preserving your credit score may be more important in some cases. Keep in mind, though, if you have a higher debt amount it is unlikely that you will be considered lendable regardless. Lenders who pull your credit report will analyze your debt to income ratio (30% of your credit score) to determine if you are lendable or not. Be smart about the situation. If you are not lendable, having a “perfect” credit score should not be the top priority. Getting your debts cleared should be more important to you. | ||||