December 2, 2016 By CainFinity
Like many people today, it is much easier to use a credit card to purchase groceries, pay your bills or go on a shopping spree. We tend not to worry about the small stuff which in reality is the real important stuff like interest rates and debt collections and you can’t forget CREDIT SCORE. We love credit cards because we don’t have to worry about paying for it “now.” The bad side to this is that we tend not to make our monthly payments when the bill comes in the mail.
Paying off a debt
Paying off a debt can hurt your credit and complicate your life in many ways. Many customers are also unaware of what these debt collectors can do. These people can actually take you to court and win the case.
When an individual is looking to consolidate a debt after being sent to collections, the first step includes validating the debt. What follows is researching the statue of limitations within your state. This will inform you if the collectors are allowed to sue. Collectors have a time period where they can sue after that time is up they are not allowed to go after customers for an unpaid debt.
Settling a debt collection is a much better option that paying off a debt in full, and here is why:
- You are not able to make payments
- Your credit score will not go down
- You will be debt free
- You won’t have to worry about getting calls from a collection agency
- You won’t have to worry about going to court
Settling a debt
Settling a debt to many people is the best option because it means that you will not be required to make the FULL payment of your debt. Creditors will usually agree to a debt settlement because even though they will not be receiving the full amount that is owed they will receive a big part of it. Whereas if they decide not to settle and pursue the customer to pay, the creditors could be losing more money than what is owed by the customer. They might have to hire a collections agency or an attorney that might cost them more. So as you can see a debt settlement is the best option for the customer as well as for the creditor, both sides win.