Debt Consolidation Versus Debt Negotiation

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One benefit of a debt negotiation program is you stop making payments to your creditors. The debt negotiation company either takes monthly payments from you and keeps it in an account, or lets you keep money in your own account. While you are making these monthly payments to debt negotiation company, they negotiate with your creditors for a lower payoff of around 40-50% of your total amount of debt. Once negotiated settlement is agreed upon with your creditors, debt negotiation company makes a one time payment to them. A downside of debt negotiation program is it lowers your credit score for as long as you are in program. However, most debt negotiation companies require creditor make credit report show paid in full so it doesn't show up as a negative on your report once your account is settled. Some debt negotiation companies include a credit repair service that will remove negative items caused by debt negotiation program. You pay for this service as part of their program. Now that you have an idea what debt consolidation versus debt negotiation is choose which one will work best for solving debt and credit problems for you. Copyright © 2005 Credit Repair Facts.com All Rights Reserved.

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Credit repair scam - How to avoid being a statistic?

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Remember that you can't create a second credit file. Some of fraudelent companies will offer to provide consumers with a different social security number (tax identification number if ssn does not exist) in order to create a new credit file for consumer. Such a practice is called as "file segregation". File segregation is illegal and does not work.

Whereever possible, add explanation to your credit report to prove your point. If you have legitimate reasons for not paying certain bills on time (switching jobs, illness), or if you refused to pay because of a dispute, send bureau a statement to be tagged with your credit report. Each lender who pulls your report will be aware why you fell behind on those bills.

Counseling might be a good option. Find a good non profit consumer credit counseling service in your neighbourhood. Get online or open your yellow pages to find one. Seek guidance of friends and family members. Select a counselor, meet them in person to make sure they are right for you. Ask them on tips and advice on how to build a good credit history. If you are still lagging behind on your payments, credit consolidation firms will be able to set up a payment plan with your creditors. If money is an issue, select a non profit credit counseling service. They will offer their service for free or for a very low cost.

Ameri credit services provides credit consolidation and credit counseling to customers. Visit us at http://www.americreditservices.com for free credit consolidation articles, free credit counseling tips and non profit credit management services.

@Copyrights 2005 - Bill A Smith is a credit counselor for Ameri credit counseling services. Bill has over 10 years of experience in providing credit consolidation, credit counseling and credit management services to clients.