Debt Settlement for Credit Cards Vs Credit Repair

When you’re struggling with overwhelming debt, it can be hard to get a clear view of all your options. Between debt settlement, credit repair, or even bankruptcy, the details can be confusing. Liberty Debt Relief has been helping customers just like you regain their financial health and move confidently into the future. Here, we’ll cover the differences between credit repair and credit card debt settlement and how each can affect your finances.

What is Credit Repair?

Simply put, credit repair is the process of improving your credit score by minimizing or eliminating negative items from your credit report. Checking your report and going over it thoroughly can help you identify incorrect information, such as late payments for accounts you paid on time. If you do discover a mistake, the next step is contacting a lawyer or financial expert who specializes in credit repair and can help you build your case.

These professionals will be able to contact the credit bureaus on your behalf and work on getting the false negative marks removed from your credit history. The process takes time, and you’ll have to provide proof to support your claim, such as a payment confirmation number when arguing a late payment, but this can improve your credit score. Credit repair, however, cannot get rid of or lower your outstanding debt.

Credit Card Debt Settlement

Settlement is an option for gaining relief from credit card debt or some other unsecured debts. This can only happen if the credit card company or lender agrees to accept a settled amount. Creditors are likely to negotiate when it becomes clear that they will not be able to recover the full debt, usually after several missed payments or an extended period of delinquency. Companies like Liberty Debt Relief can help you during the process and are typically more successful at getting the outcome you are seeking due to years of experience with debt settlement. This process also takes time, but it can significantly lessen your debt (sometimes even cutting it in half).

If you elect to employ a debt settlement company, be sure to get the fees in writing upfront. Never utilize a service that requires any form of upfront payment, as this is illegal and you should receive the assistance you need before paying for services. Liberty Debt Relief does not charge any upfront fees.

So, Which Option is Better?

Deciding on credit repair vs. credit card debt settlement can be tricky to navigate. Of course, if you’re struggling financially like so many Americans today, you should employ every option available to pay off your debt. When it comes down to it, debt settlement for credit cards will help you out of debt, while credit repair can only ensure your payments and debts are recorded properly. On the other hand, if you’re able to keep up with your payments but are just concerned about mistakes on your report, credit repair is probably more appropriate.

Liberty Debt Relief

Contact Liberty Debt Relief today for a free consultation. Our experts can evaluate your specific situation and provide options to match your needs. Regain your financial health and freedom with help from our amazing staff. If you are overwhelmed by credit card debt, medical debt, private student loans, or other forms of unsecured debt, the team at Liberty Debt Relief can help with your negotiations.

Should You Open A Credit Card for Your Business?

Owning a business is an exciting venture that every self-sufficient entrepreneur loves to take part in. Taking that step to bring a good or service to the community is filled with seemingly endless questions: Where to start, how many people to hire and most importantly, how to get the money to fund the business’ success. Getting a business credit card is a great way to help with that last question — and all of the others before it — so you can fuel your company’s success while working to stay out of debt. If you are on the fence about getting a credit card for your investment, check out Liberty Debt Relief’s top recommendations for saying yes to a business credit card.

Your business has a steady income

The best time to open up a credit card is when you have a proven financial track record. Opening a business takes a lot of time, patience and money and the last thing you want to do is get into a significant amount of debt before you are able to pay it off. If you think it is time to look into opening up a credit card for your business, take a look at your business’ finances from the past few years. Specifically, consider how much money you have earned, lost and what financial resources you need to continue to grow.

When your business has earned a steady income and is projected to continue to do so, getting a business credit card can help your business establish accreditation while also building your personal credit score and staying out of debt. The primary factor you want to consider is if you will be able to make any monthly payments toward the card without going into personal or business debt. If so, getting a credit card can help you better manage the business’ finances, get higher credit limits, and even earn rewards that will allow you to invest back into your business.

Your business has grown

Growth is every businessman or business woman’s favorite word. For freshly started entrepreneurs, it can make the difference between a hole-in-the-wall shop to two large storefronts in a big city. While a credit card is not the best option for your business if you are using it solely to fund a business expansion, it can be a great way to continue already established growth.

Along with helping you get more merchandise to fit the demand of your customers, it can also allow you to be more versatile in your opportunities. Cash back rewards, for example, will allow you to pay for your standard costs while also gaining some additional money to help offset costs. A great business credit card will also give you rewards for business travel and can provide you with multiple cards that employees can use for expenses they come across while on the job.

You’re a freelancer looking for more opportunity

Business credit cards are not just for business owners looking to stay out of debt; they are also extremely beneficial to freelancers. Being a freelancer can be difficult when juggling invoices with different companies and going line by line on your account statements to determine what’s personal and what’s business related. Additionally, having a business credit card provides you with protection. Many freelancers do not have the same protections as other employees because they are not with a specific company for an extended of time. If you were ever faced with a legal challenge while working as a freelancer, having a card specifically for your business will ensure that your personal accounts stay unaffected and you have the financial backing needed to solve the issue quickly and effectively.

Many freelancers also require a significant amount of travel and equipment. By investing in a credit card for your freelance business, you can establish a little more wiggle room to travel for more work or even invest in your business. If you are a freelance designer or reporter, for example, you can use your business card for a new and faster laptop and software, or even dedicate more time to a client who wants to meet in a different state while racking up rewards that you can use in the future.

When not to open a business credit card

While a credit card is a great way to take your business to the next level, it is not the right move for everyone. If you are just starting your business, for example, and have not established a regular and stable income, then getting business credit cards may actually put you in more debt. It is always crucial to make sure with any new line of credit that you can pay off the debt every month or you risk getting high interest added to the amount and sinking your business before you have the chance to see it flourish.

A solution for everyone

If you think that opening a credit card for your business may be the right route for you, then consider speaking to a Liberty Debt Relief Debt Consultant. They will help you figure out your short-term and long-term financial goals for you and your business to come up with the solution that fits you and your needs.

Should I Open a Credit Card: the Pros and Cons

Credit cards are an integral tool of modern personal finance. In fact, they can be life-saving in dire emergencies and a great way to stay on top of your everyday bills, even when you’re strapped for cash. However, in most instances, you must pay off your balance every month to avoid accruing interest. The interest rates on credit cards can be extremely high and improper credit card usage can end up costing you. Still wondering “Should I open a credit card?” Liberty Debt Relief is here to cover credit card pros and cons so you can be empowered to make the right decision for your unique situation.

Types of Credit Cards

There are several kinds of credit cards, all offering you, the customer, different benefits. Before applying, evaluate your lifestyle and needs and determine what benefits would best serve you. Here are a few to look for:

Rewards – These include cash back, travel miles, discounts with merchants, and access to exclusive clubs.

Low Interest – For those with good credit, this kind of card is ideal for those who carry a balance from month to month.

Balance Transfer – Additionally, those with good credit looking to save some money can look into this option. These offer low (often 0%APR) introductory rates for moving existing high-interest credit card debt to this new card and can save you money in interest and fees. Typically, you have 12-18 months to pay off the balance before the rates change.

Secured – This type of credit card requires a security deposit in exchange for a credit limit. If you have a short or less than optimal credit card history, this may be your best option.

The Ups and Downs of Owning Credit Cards


  1. Build Credit History – If you have a lackluster or non-existent credit history, establishing and maintaining good standing with a credit card can improve your score and lay the groundwork for additional credit opportunities, such as mortgages.
  2. Earn Rewards – As we mentioned above, many financial institutions offer rewards for purchases made with their credit cards, which means you can actually earn money each time you swipe your card. When considering the credit card pros and cons, keeping rewards high and interest and fees low is the sweet spot of credit card ownership.
  3. Convenience – Having a line of credit means you can get more done with less cash on hand. You have more payment options and, if you pay off your balance each month, this convenience can help you (or even your business) save time and money.
  4. Cash for Emergencies – Keeping your credit card balance low means you will have a cash reserve for emergency situations. But, beware, cash advances often carry higher interest rates than regular purchases.


  1. Debt Accumulation – Without discipline, debt can accumulate rapidly. Maintaining responsible spending habits will be necessary to avoid overspending and accumulating interest charges or other fees. Additionally, maxing out your credit line can negatively affect your credit score.
  2. High Interest Rates and Fees – If your credit isn’t stellar, you might be faced with high-interest credit cards. These cards can rack up significant interest fees is not paid off each month. Late payments can also incur large fees, so it is important to at least pay off the minimum due each month.
  3. Potential for Fraud – Having a credit card puts you at risk for fraud, in which your account is hacked and used without your permission. If you decide to get a card, be sure to choose one that offers protection.
  4. This list of credit card pros and cons is not exhaustive. You should seek out information that might be unique to your specific financial situation.

How to Prepare

If you decide that a credit card is a good option for you, here are some things to bear in mind in preparation for the jump.

  1. Build and Maintain Good Credit
    It’s no secret that customers with better credit will have access to better terms, including lower interest rates, better rewards systems, and higher credit limits. Maintaining good credit involves making consistent on-time payments on existing debt or eliminating existing debt entirely.
  2. Challenge any Negative Information
    Thoroughly review your credit report for errors or suspicious activity. Be sure to challenge any incorrectly reported information and insist on having it removed from your report. Cleaning up your report can go a long way in demonstrating credit-worthiness.
  3. Avoid Taking on Other Types of Debt
    It’s best to avoid other types of debt when opening a card, as these can raise your debt-to-income ratio, making acquiring a credit card that much more difficult. This also includes co-signing for someone else’s debt, especially an irresponsible or financially-strained person.
  4. Improve Your Financial Literacy
    Now would be a great time to learn how to budget and optimize your spending habits. Track the flow of money into and out of your accounts and be ruthless in eliminating unnecessary expenses.

There’s no doubt that credit cards can provide enormous benefits, but they can also be nightmares if used incorrectly. If you’re still wondering “Should I open a credit card?”, be sure to do diligent research before taking on the responsibility.

Liberty Debt Relief

Liberty Debt Relief has given thousands of customers a second chance at financial freedom. Whether you’re facing overwhelming credit card debt, or you’re looking to rebuild your credit after a rough patch, we can offer your expert debt relief counseling so you can get on the road to a healthy financial future. For more discussion about credit card pros and cons, feel free to contact us today!

Debt Settlement Programs & Getting Loans and Credit in the Future?

Credit Debt Relief and Your Future

Millions of Americans are burdened with credit card debts. The average American carries $6,400 dollars in account balances, and many carry balances in the tens of thousands of dollars. It’s no wonder that many are looking for credit debt relief. If you are in the same boat, we want to equip you with knowledge about your options and the effects of debt relief so you can make the best decision for your financial situation.

What is Debt Settlement

This program includes sitting down with a financial expert and talking about your situation, funds, and current amounts due. Through these discussions, you and the professional will determine which accounts you want to settle and how much you can afford to offer during negotiations. Then, the expert will contact your lenders and begin the process of getting your total debt lowered, sometimes even down to 50 percent of what you originally owed! To get this kind of help for yourself, contact Liberty Debt Relief today!

Your Future After Settling

A More Positive Mark on Your Credit Report: The short answer to whether or not you will be able to get loans after completing credit debt relief is yes. Credit reports include details about missed or late payments, and future lenders will take note of these when considering whether or not to approve your new loan. This, of course, affects your credit score and may prevent you from getting the lines of credit you need. On the other hand, creditors for mortgages, car loans, private student loans, and more will see a settlement on your credit report, but they will interpret it very differently. To many lenders, this will appear as a situation where you took financial responsibility and made a great effort to pay off your debt. Essentially, late or missing payments are seen as delinquencies, while settlement is not.

Less Debt Coming into a New Loan: Besides marks on your credit report, creditors viewing your loan application also consider your debt-to-income ratio and how many lines of credit you already have. If you have multiple cards and they are all maxed out, a settlement can help eliminate some of these. Less debt means more money to pay off remaining balances. As you decrease the number of debts attributed to your name, your credit rating should increase and more lenders will be willing to accept your applications.

Credit Debt Relief with Liberty Debt Relief

We specialize in creating personalized strategies to help you settle your debt and understand the long and short-term effects of debt relief. We can walk you through various options to ensure you are well-informed before making any major financial decisions. Call us today for a free phone consultation so you can better understand your options and begin the journey to being debt-free. Make the first step towards your bright financial future with Liberty Debt Relief today!

How To Keep Credit Card Debt Down During College

Dealing with Credit Card Debt in College

Academics are not the only priority students need to make throughout college. The hundreds of textbooks, tuition payments, school supplies, and outings usually add up quickly and tend to leave thousands of recent graduates with a daunting amount of credit card debt from their time in college. The good news is that, while getting into that financial rut tends to be a lot easier than many people think, getting debt relief is possible and builds lifelong habits that will streamline your success.

To make sure you are not one of the many who graduates with an ‘F’ in financial responsibility, sit down and take some notes on how you can keep your credit card debt down in college.

Make Financial Health A Priority

Before even attempting to understand the ins and outs of getting your own credit card, it is crucial to understand that your financial well-being can directly affect your overall health. Place your financial success on the same pedestal as your academic and health accomplishments and think of your finances as a priority instead of a resource.

Imagine, for example, that you are standing in the middle of a platform that is balanced by your priorities in its four corners: mental, emotional, physical, and financial. If one of those corners is too heavy or too light, you fall over and it becomes difficult to regain balance. Accruing too much credit card debt in college has the same impact — as soon as you let it get too heavy, you become unbalanced and it is difficult to get back on your feet. Money is not everything, but it definitely impacts your general quality of life and should be treated as such.

Don’t Overindulge in Card Offers

Almost as soon as you open your first textbook, you will likely be swarmed with dozens of credit card offers. As tempting as it is to apply to each one, credit cards are not free money and you can find yourself in serious financial trouble if you are not careful. That being said, having a credit card is a great way to build your credit score to help you get better student loans or maybe even get a new car when it comes time to begin your career.

An optimal choice to minimize credit card debt for college students is a credit card designed specifically for students. These cards will have significantly lower interest rates and fees and sometimes even have special offers for full-time students, such as deferred payment methods or cashback opportunities. Regardless of which card you choose, make sure to limit the number of credit accounts you open and to check all the fine print before signing up.

Familiarize Yourself With FICO

A’s are not the only scores to strive for throughout college. When opening lines of credit, it is absolutely essential to understand that every account plays into your overall FICO credit score. This score acts as your financial grade point average, and is generally the first impression businesses and banks get of you when you seek more financial opportunities in the future, whether that be applying for another credit card or loan, purchasing a car, or renting an apartment or home.

FICO scores are determined by multiple factors and range from 300 to 850 where 850 is excellent and 300 is poor. Thirty percent of your overall score depends on how much you owe and how much available credit remains, 35 percent depends on your payment history, 15 percent is determined by the length of your credit accounts, 10 percent is determined by the types of credit you have, and the remaining 10 percent of your score depends on how much of your credit is new. The higher you allow your credit card debt to grow in college, the lower your score will likely be upon graduation and the more difficult delving into adulthood may be.

Aim For An ‘A’

Now that you understand your FICO score a little better, it is important to work hard to improve it. A high credit score means you are considered a low risk to potential lenders and can help lower interest rates while increasing spending limits and financial flexibility. To ace your financial literacy and set the curve for credit card debt for college students, set a plan to improve your FICO score.

This can be done by making higher payments more regularly, using your credit for smaller purchases that you can pay off within the billing cycle, keeping accounts open for longer terms, and refraining from maxing out your card every few months. Generally speaking, students who own credit cards are most successful when using the cards only for essential items or for emergency situations. Never use your credit card for luxury weekend excursions or to treat yourself to an expensive item that you wouldn’t be able to afford without a large line of credit.

Work, Work, Work and Work A Little More

Yes, college is difficult and academics take priority, but a little scheduling and time management can go along way, especially when trying to build your financial repertoire. Getting a couple part-time jobs, freelancing gigs, babysitting opportunities, or even a full-time job can significantly lower your chances of going into extreme debt, especially if your first few months of financial freedom took a heavy hit on your bank account. This is not to suggest that every student has to work 60 hour weeks on top of courses and extracurriculars, but if you do happen to come across a financially burdensome situation, it is always better to try and solve it sooner rather than later.

College is all about learning and planning for a successful career in the future, but a big part of that education comes in the form of financial literacy. Take the necessary steps to stay out of credit card debt in college and you will be sure to secure the positive and successful financial future you have always dreamed of.

How Can I Settle My Credit Card Debt

Credit Card Debt Settlement Options

Millions of Americans today struggle with overwhelming credit card debt. According to the Federal Reserve Bank of New York, the overall US total debt balance continues to rise and is now well over 13 trillion dollars. If you are dealing with bills from multiple accounts and they just keep adding up, know that you are not alone in wondering how to settle credit card debt. There are a variety of options available so you can get back on your feet and experience relief from credit card debt. Settlement could be a great option for you depending on your financial situation and overall financial goals.

Debt Settlement Options

It is essential to review all of the options available to you so that you can choose the best way to settle your credit card debt. There are three key ways to be aware of, including:

1.  Handling the Negotiations on Your Own

Here, you alone sit down with your lender and negotiate the terms to determine the amount for which you can settle your outstanding debt. Your goal here is obviously to bring it down to a smaller amount than you previously owed, but it can be incredibly difficult to negotiate without the right level or experience and overall subject matter knowledge. This is an option, but negotiations are often more successful when you have the right expertise.

2.  Getting a Lawyer

The next option is to hire a lawyer to negotiate your credit card debt settlement on your behalf. This is a good option for some depending on the amount of credit card debt that you owe and if you are concerned about potential legal ramifications. A lawyer will be more focused on the legal impact of your settlement instead of the potential financial impacts. The biggest downside of working with a lawyer is that they are often costly and charge by the hour. Debt settlements can take months or even years. The amount of credit card debt that you owe may determine if you can afford a lawyer and if this is the right option for you.

3.  Finding the Right Debt Settlement Company

Working with a debt settlement company is an excellent option that many choose because these knowledgeable experts have years of experience working and negotiating with lenders. Over that time, they have developed working relationships with lenders. It is important to find the right debt settlement company for you and your specific needs, so be sure to solidify your financial goals. This will also help you communicate what you hope to gain from settling your credit card debt. Additionally, many debt settlement companies charge a fee, which is typically a percentage of your credit card debt settlement. This may be the most affordable option, depending on your needs.

The Impact of Debt Settlement

Whatever option you choose, debt relief will likely have a negative impact on your credit score. Depending on the outstanding amount you owe, debt settlement can stay on your credit report for several years.

In addition to impacting your credit score, settling your credit card debt will also have implications for your taxes. The IRS will consider any amount of debt that is forgiven or settled as income that you received. This means that you will owe personal income tax on the amount of debt that was forgiven. Be sure to meet with an accountant or with your debt settlement company to review the full terms of your agreement.

Experience Debt Relief

Settling your credit card debt can be a financial relief and can help you experience more financial freedom. It can give you the fresh start you need to regain control of your finances. Be sure to research all of the options available to you so that you can make the right choice for your circumstances. You don’t have to live with debt for the rest of your life. With credit card debt settlement you can get on track.