Debt settlement consolidation may be one of your last options to getting out of debt before bankruptcy. If you haven’t been responsible with your credit to date, this may be your only option.
If you handle your debt settlement consolidation correctly, you can see results in elevating your credit score and getting out of debt once and for all. The first step in doing your debt settlement consolidation correctly is to get a reputable debt counselor. This counselor will work with your creditors to lower your interest rates or set up a repayment plan. You will then pay the counseling company a single payment each month. If you pay the bill on time and in the full amount, your credit score will improve over time.
Settling some of your accounts will give you a better deal on interest rates or repayment amounts. The debt counselor will give you guidance on whether to do this or not. If your counselor can get your creditor to cut the balance as part of the debt settlement consolidation, your credit might be affected for a while in a negative way, but as you pay off the debts, it will show up as settled. In time, your credit will improve.
Now, don’t get too excited about jumping into a debt settlement consolidation situation. This is not a step to getting out of debt so you can go right back into debt. This is a step toward getting out of debt for the rest of your life and building a good credit portfolio for purchases that positively affect your future.
If you have a large amount of debt, it’s going to take a long time, even several years to repay the debt on a debt settlement consolidation basis. It may even take you up to a decade to get out of this mess, but if you are dedicated and willing to make sacrifices, you can do it much faster. Debt settlement consolidation may be a last resort, but it may be the best option you have. It will help you get back on your feet and teach you a new approach to money, if you are willing to work with your debt counselor.