Settling Your Debts – Is It Worth It
If you have bad credit, you may have asked yourself if settling your old debts is really worth it… especially if they are several years delinquent. In a word, the answer is yes. Any step you can take to improve your credit is a step in the right direction. As the saying goes, ‘it’s better late than never’!
Many people have been successful settling their debts, on their own, without the further assistance of a debt settlement company. This is your least expensive option when you are trying to improve your credit, using this method.
(Debt settlement companies charge relatively high fees to do the same thing that you can do yourself. If they make promises to magically ‘erase’ your bad credit, be aware that they are probably talking about doing something illegal.)
Before contacting each of your creditors, have a solid plan in mind. Explain that you are willing to settle your debt for a lesser amount than what is actually owed. Many times they will agree to terms, simply because they want to recoup at least a portion of what is owed to them. Something is always better than nothing.
If they are agreeable get everything in writing before making an initial payment. This will protect you in case they try to alter the terms without your knowledge.