pay your creditors less than you owe should be avoided if at all possible, but
if it turns out that debt settlement is the best option for you, the good news
is that many creditors are willing to negotiate. Consider some of these do's and don'ts before
Tip #1 – Don't wait, be proactive
- Don't wait until charged off
- Creates options & may salvage credit score
- Creditors want a positive outcome.
Tip #2 – Don't overlook the
can create a taxable event
impact on credit report
sent to future creditors
Tip #3 – Do be prepared to show your
want documentation before settling
proof of hardship.
to concessions just for a deal.
Tip #4 – Don't make a promise you
- Set payments
you can manage.
unrealistic settlement plan.
defaulting and collections
Tip #5 – Do make sure the matter is
settlement show properly on credit report.
settlement payments be reported to bureaus
sure collections activity stops