When people are burdened with a debt crises,
especially if the crisis has just happened, that holds
them back from getting organized help is their credit score.
What do I mean by this? Well, if someone is having great
difficulty meeting their monthly minimums on their unsecured
credit card debt, and is in fact in a pay for life program
where the debt will not be paid off for 30 years or sometimes
longer, the first question asked is “how will a debt management program
program effect my credit”.

Please do not misunderstand me, it is a reasonable
question and should be asked. The fact is that because accounts
in a debt management program are closed to further charging,
at the time the bank accepts the proposals for new payment terms,
the credit score does take a hit. How great a hit, depends on
many factors outside the scope of this article. But, because
of this fact, some people laden with debt will not proceed,
failing to get the point, or to understand that they have
been brainwashed into debt slavery.

Credit scores rise and fall. Does it make any sense to pay
back a debt at 30% interest over 30 years, so you can protect
your credit score for a few points? The fact is, as you get rid
of debt, you will start improving your credit profile, and not be
anyone’s debt slave. You will as a debt free person, be totally
self empowered in your financial life. Furthermore, your health
will improve, as will your mental outlook. These are very tangible
reasons to make the necessary sacrifice to your credit score.

This credit score issue is used by non-profits to tell
people to avoid debt settlement, even when debt settlement
is the most viable option. The fact is that unless a
consumer is in a true financial crises, they should not
be in a debt settlement program. So if the debt ridden
is already in a debt crises with a poor credit score, then,
they are able to see more clearly how a structured debt relief
program, whatever it is, can help. Then, the only way to go,
in terms of a credit score is up.

Written by:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465