How would applying for a debt reduction program affect the c

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jayben

Joined: 14 Oct 2009
jayben's page
Posts: 9

261 Magic Points

Subject: How would applying for a debt reduction program affect the c

Wed Oct 14, 2009 7:47 pm

i'm in debt up to my eyeballs from unsecured personal loans and student loans. i'm barely able to keep up with my payments on the unsecured loan but am falling behind on my student loans. i need help otherwise my credit will go down the toilet.

what would happen if i applied for debt reduction? would it be more harmful to my credit than not making the payments on my loans?[/url]

Justin

Justin

Joined: 17 Jul 2006
Justin's page
Posts: 1093

25288 Magic Points

Thu Oct 15, 2009 5:30 am

Hi Jayben,

If you apply for debt reduction, debt settlement or debt consolidation program, then it will be listed in your credit report in that way. However, this listing will not be as harmful as not making the payments at all. I would suggest you to go for debt consolidation program since you are not able to pay off the debts.

After you opt for a debt consolidation program, the debt consultant will deal with the creditors on your behalf. After the debt is settled, your credit report will reflect the status in that way. Or else when you are going for debt reduction program, ask the consultant to request the lender about removing the negative item from your report through a pay for delete letter.
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All the Best Smile

Justin

Guest

Mon Oct 19, 2009 8:33 pm

hey thanks justin i appreciate the advice. it makes sense and it should help out a lot in this journey

thanks again

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