Is credit card debt settlement bad for your credit?
I am a senior in college, I have no job now as I am finishing school. I start work in June, and I actually have good credit, over 700, and 5k in credit card debt. I’ve paid my bill in full always in the past until my last killer spring break. Debt settlement sounds cool to cut the debt in half which I would pay off with a lump sum, or should I just stomach it for another month where I can pay it all off entirely in full. Thanks.
Robert
Comments
Comment from chellewolfe
Time December 1, 2009 at 11:39 am
I work for a debt settlement it is the fastest and easiest way to due it. With how little you debt you have I would suck it up one more month and then pay it off in full. If you settle your debt it will lower your credit score a little.
Comment from JWas
Time December 3, 2009 at 10:00 am
Any time you miss a credit card payment it’s hard on your credit score.
Comment from Dale H
Time December 4, 2009 at 10:08 am
Pay your bill or you will suffer for a long time. It would take at least 2 years to recover. Why mess up your credit (which is invaluable) over the possibility of saving a couple grand?
Use your head.
Comment from mss
Time December 6, 2009 at 1:55 pm
You have not provided enough information but, if I understand correctly, your credit cards have not yet become delinquent, otherwise your credit score would not have been over 700.
If you have paid at least the minimum payment on EACH of your credit cards for every statement, you are in good shape, as far as your credit history goes. Your credit score could be slightly damaged by your higher debt-to-credit ratio, but that is a minor concern, because it will be corrected as soon as you either pay off some of the balance due or increase your credit line. Or open another credit card. And with a score above 700 you will have no problem opening a credit card with a 0% balance transfer interest rate to transfer some, or all, of the balance on your current credit card. That should take care of the problem until you start getting paid. You will need to be careful though, as all banks charge a balance transfer fee of 3% of the total amount. Some banks, however, like Citibank and Bank of America offer credit cards with 0% balance transfer rate and $0 balance transfer fee on some of their credit cards. I would recommend browsing through their credit card offers.
What will seriously damage your credit history for a long time is missing a credit card payment. It will stay there for 7 years, even after you settle with your creditor.
Comment from Wilfred K
Time December 8, 2009 at 2:41 am
Paying your debts is must. As any debts affect your credit report and credit score. And then you would have problem in future purchasing, leasing or taking loan
Yes that could be the best option as my girlfriend some years back had used the services of for credit card debts settlement and she was successful in getting out of it.
Comment from david S
Time December 11, 2009 at 5:39 am
Using google to find some related info or you could try using answer engines such as yahoo answer or yedda.com to obtain some useful ideas.however,If you want some direct infomation,here is a nice one from my experience.http://debt-relief.expertips4u.info/consolidation-debt-guaranteed-loan-unsecured.html
Comment from Jennifer
Time December 13, 2009 at 5:38 pm
Hi,
I used “Credit Solution” to settle my debt and improve my credit score.They managed to reduce my debt up to 58% .It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:
Comment from Slimick
Time November 28, 2009 at 5:01 am
Debt settlement is a big negative on your credit file….I wouldn’t do it to save $2,500