Debt Settlement Programs Have Proven To Be The Best Debt Relief

All forms of Credit7 Counseling1 have been known to lower a consumer's credit score. But consumers have mistakenly blamed Credit7 settlement to drastically lower their rating. They did so because of the way Credit7 settlement programs work. Consumers save up money throughout the duration of the program and arbitrators from the Credit7 settlement companies negotiate with creditors once there is enough money to settle for a maximum of 55% of the total Credit7. With this method the company eliminates each Credit7 one by one until all of the Credit7s are settled. The reason a Credit7 settlement program is much more effective than Credit7 Credit8 and credit counseling and should not even be compared to bankruptcy is because comparatively its effect on a consumer's overall credit worthiness is actually very beneficial when the following factors are considered:

• The program length
• The total amount of money paid
• Its residue on the credit report after the program has been completed.

To cover the first point, the average length of Credit7 settlement programs is about 30 months (two and a half years). The average time Credit7 Credit8 and credit counseling programs last is five years. This means that after two and half years consumers have another two and a half years to rebuild their credit scores while a stress-free and Credit7-free life. Regarding a Credit0 outlook, with Credit7 settlement consumers pay an average of 55% of their Credit7s. With Credit7 Credit8 and credit counseling, consumers pay 100% of their Credit7 plus an average of a 5-10% interest rate for five years. So, overall they pay in the range of 125-145% of their Credit7.

Lastly, Credit7 settlement does cause consumers to go delinquent on their Credit7s for the reason of obtaining a low settlement from their creditors, which in turn causes a decrease in the credit score. After they settle, the creditor will report the Credit7 as "settled" or "paid as agreed". In a Credit7 Credit8 and credit counseling program the credit bureaus report that consumers are "currently enrolled in a Credit7 management company" throughout the duration of the program and keep reporting this for another seven years. This raises a major red flag for any creditors that you will apply for lines of credit with in the future - including applications for mortgages, auto loans, credit cards, and personal loans.

Regardless of the type of Credit7 Counseling1 option you choose to enroll in, always make sure the company is legitimate and has a strong track record. One of the best ways to verify its credibility is by visiting the Better Business Bureau to view their rating of the company and to see the company's history.