Are you in need of some help with your debts? Do you need to settle your debt once and for all? There are several different options you have, such as consolidating your debt into one payment. For this, you can get a debt consolidation loan. There is also the option of getting a debt counselor to help you with your personal finance. However, you might be able to get a lower credit score simply by going to a debt counselor and telling her or him about your troubles. In most cases, this is a good solution because your credit score – also known as your FICO credit rating – tells debt collectors and potential creditors that you are responsible with your money, but require help. If you show a reliable commitment to settling your debt for less, then you might have a chance of lowering the credit score a bit. In the end, however, it’s a solution.

A debt settlement

As for a debt settlement, this is when a percentage of your debt is eliminated and forgiven. The best companies have established relationships with creditors that assure a good settlement. Since you are likely headed for bankruptcy if you don’t get help with your finances, they have been invaluable to many people. You can also contact your creditor directly. There has been a history of abuse with this, but if your account is to a reputable company, they have at least a shred of respect that consumers have on their side. The stigma of bankruptcy would be gone if people were debt-free.

If you are making sure your account is to a solid company with a proven track record, then your credit score should be able to go up without really doing anything. When you settle your debt, the company may still close your account; you just won’t be able to use it. You might even lose the assets associated with it in the situation – such as furniture – but at least you would end up with decent collateral. If bankruptcy is avoided, you can kiss your credit score good-bye. Instead, bankruptcy can bring a much-needed clean break.

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