by Don Wilson
To settle a debt for the lowest amount possible you need to consider a lot of different factors. I'm going to teach you one of the biggest, if not the biggest, factor in debt settlement. More importantly I'm going to tell you how to use it to your advantage.
Settling debt is all about gaining leverage over your creditors. The more leverage that you can gain the more money you can get written off of your bill. With that in mind, you need to know that some factors in debt settlement you can control and some you just can't. The big thing to know is even if you can't control a factor, you can still use it to your advantage.
A huge factor is whether or not your debt is going to your credit report. You can't control this factor, but it's huge. Your creditors ability to put a debt on your credit is leverage for them. We will take this from the perspective that your bill is in collections. First and foremost, if your bill has been in collections for more than two months and it's not on your credit, it's not going on your credit.
As we went over earlier, the ability to report something to your credit is leverage for a creditor. If it was allowed they would do it right when they got the account. They can't do this because the Fair Credit Reporting Act (FCRA) makes them allow a 30 day validation period. This period gives you time to dispute a bill before it makes it to your credit. They can't put your debt on your credit during this time because they have not validated it. When the 30 day period is over and the next credit reporting cycle comes around, you can bet that your debt will be reported to the credit.
What you want to do now is pull your credit report. If you have a bill in collections for over 60 days then it's not going to be on your credit if it's not already there. There are some scenarios that this isn't true such as workman's compensation cases, but generally it's not going to end up on your credit. When you offer a your settlement amount to your creditor or to the collection agency, if it's not going to your credit, it should be a smaller amount. - 41115
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New Unique Article!
Title: Debt Settlement And It's Biggest Factor
Author: Don Wilson
Email: owner@beatdebttoday.com
Keywords: Debt Settlement,Collection Debt,Get out of debt,Debt Relief,Credit,Debt,Finance,Credit,Budgeting
Word Count: 393
Category: Finance:Credit
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