The Biggest Factor In Debt Settlement
There are a lot of factors involved with settling debt for the lowest amount. I will show you the number one most important factor involved in debt settlement. Furthermore, I will show you the best way 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 big factor is if your debt is going to be reported to your credit. This factor is uncontrollable, but very important. The ability to report a debt on your credit is leverage for your creditors. Let's consider this from the collection debt point of view. The first thing that you need to know is that, if your debt has been in collections for over two months and it hasn't already been placed on your credit report, then it wont be reported to your credit.
Like I said earlier a creditors ability to put your debt on your credit report is leverage for them. If they could they would do this the first day they get the account. They don't though because the Fair Credit Reporting Act (FCRA) requires them to give you a 30 day validation period. This period allows you to dispute a bill before it goes on your credit report. They won't report during this period because the debt hasn't been validated yet. As soon as that 30 days is up and it's time to report to the credit bureau again you can bank on it that your debt is going to get reported.
Now you need to check your credit report. If the bills have been at collection agencies for longer than 60 days and it is yet to show up on the credit, then it's not going to go to it. There are a couple of exceptions to this, but this is a guideline for most situations that it wont end up on the credit report. When you settle this bill your should definitely be offering them a substantially lower amount then if they could put the debt on your credit report.
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 big factor is if your debt is going to be reported to your credit. This factor is uncontrollable, but very important. The ability to report a debt on your credit is leverage for your creditors. Let's consider this from the collection debt point of view. The first thing that you need to know is that, if your debt has been in collections for over two months and it hasn't already been placed on your credit report, then it wont be reported to your credit.
Like I said earlier a creditors ability to put your debt on your credit report is leverage for them. If they could they would do this the first day they get the account. They don't though because the Fair Credit Reporting Act (FCRA) requires them to give you a 30 day validation period. This period allows you to dispute a bill before it goes on your credit report. They won't report during this period because the debt hasn't been validated yet. As soon as that 30 days is up and it's time to report to the credit bureau again you can bank on it that your debt is going to get reported.
Now you need to check your credit report. If the bills have been at collection agencies for longer than 60 days and it is yet to show up on the credit, then it's not going to go to it. There are a couple of exceptions to this, but this is a guideline for most situations that it wont end up on the credit report. When you settle this bill your should definitely be offering them a substantially lower amount then if they could put the debt on your credit report.
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