If Your Creditor Reports That You Did Not Pay Your Debt In Full, It Will Damage Your Credit Substantially

Category: Finance, Credit.

Getting so far into debt that you cannot pay your bills on time or in full is detrimental to your credit, but it is common in the world of credit today. Despite all the damage that can be done because of these mistakes, there are a couple of options that can be taken to relieve you of the most damage possible.

It is also common for people to get overdraw on their credit accounts, leaving them beyond their limit with loads of money to pay back. When you have overdrawn on your credit card, is it better to pay that balance over time or to take a reduced settlement from the credit card company and get rid of the remaining debt? How much you owe, how much your interest will be as a result of an exceeded limit, where you stand in your ability to pay back the money that you owe, and how much either option will damage your credit score are all factors in determining which will be the most beneficial to you. It all really depends on the person in debt. If you decide that you will be settling your debt, there are a few things you need to consider. They will still be in the hole by doing this because you do not pay the full amount, but they will have something.

When a creditor fears that you will take out bankruptcy or do something else to relieve yourself of the debt you owe to them, they will be willing to take a reasonable payment that is less than the amount you originally owed rather than just coming up empty handed. If this is the option that you take, try to settle it in a way that will relieve you of the" partially paid" report. However, you can negotiate with them and get them to report that you" paid in full" the amount they requested, which in this case would be the new amount that was settled for. If your creditor reports that you did not pay your debt in full, it will damage your credit substantially. Creditors will not always do this, in which some cases it would be better to continue to pay on the original balance, taking the risk of making late or partial payments monthly, which will also hurt your credit score. If you owe a lot and feel that you could not ever get out of debt by making payments on time, the settlement still may be a better option for you, whether they report that you paid in full or not. It still all comes down to how much money you owe.

Still, it s possible and often likely that they will do so, and so you need to do everything possible to get them to report that you paid in full so that your credit report will not suffer so much.

Read more...

After That You Get 3% Rebates - Finance and Credit Articles:

Introducing a credit card that actually pays you to drive.

Even The Cash Advance Fee Is Low With This Card - Finance and Credit Articles:

You probably don t even take the time to think about it.

A Credit Card Makes It Easier To Track Spending - Finance and Credit:

The current credit crunch is a good reminder that too many people these days don t really know how to handle their money. It s a tough time to set a good example.