Anytime you do not make the payments you agreed to make with your creditors, your credit rating will be negatively impacted whether enrolling in a program or not. If your credit lines are at or near their credit limits, it negatively affects your credit score. Our Debt Specialists can evaluate your credit score and debt amount by obtaining your credit report using a soft pull that has no impact on your credit rating, and this service is free of charge. Our goal with debt negotiation is to resolve your debt as fast as possible by obtaining forgiveness of a large portion of your balances. This can be a great alternative to a very damaging bankruptcy and, in some cases, is less expensive compared to chapter 13 bankruptcy.
Once you have eliminated your debt, you can rebuild your credit relatively quickly. Also, by not carrying the unsecured debt, your debt-to-income ratio will be dramatically improved, which will improve your overall financial profile. Many of our clients who fell behind before enrollment will have much better credit scores when they graduate compared to when they started because they no longer owe the overwhelming debt. The reality is that a good credit score is practically useless if you cannot afford to take on the payments of additional debt. You can get a good credit score back, but you cannot get back the money thrown away to high-interest charges month over month and year after year. Furthermore, you cannot get back the lost opportunity if you had invested the money instead of thrown it away to high interest. Affordable Debt Consolidation is not a “credit repair” company. Our debt relief clients are provided copies of all creditor settlement letters reflecting a zero balance owed. These letters can be used to update the credit reports free of charge if needed.