Matt: The main thing for ReallyGreatRate's customers to remember is that as they begin to pay off their accounts and move towards obtaining zero balances, they ultimately lower their debt to income ratio. As months pass, any derogatory history a customer once had begins to have less and less bearing on his or her credit score.
Does a debt management program affect credit at the start?That's correct. Any debt management program does affect a debt relief customer's credit in the beginning.
Why is that?It occurs because while a customer is in a Debt Settlement program, the customer will receive late marks on his credit. After all, the customer is not at that time making regular payments to creditors. But the main thing for a customer to remember is that overall, he's doing himself a huge favor with Debt Settlement. Remember, one's credit rating is determined mainly by two factors, the first being payment history. Secondly, there's the amount of total debt accumulated, or debt to income ratio. Well, derogatory history has less bearing on credit as time goes on. Some lenders feel accounts are actually given very little consideration at all after 12 months.
So is what you're saying that any negative effects of Debt Settlement are in actuality temporary?That's exactly right, Carole. Remember: if a person is considering chapter 7 & 13 bankruptcy – even though that can be the wise move in a minority of instances – well bankruptcy will stay on one's credit report for 10 years. But if all other debts – cars, house, and such – have now been paid in a timely manner, the effects of Debt Settlement on a customer's entire credit picture are only temporary. Meanwhile, and this is really the most important thing to remember: a customer has been working with the most effective Debt Relief service program ReallyGreatRate could find for his exact set of circumstances.