Will Debt Settlement Programs Disqualify Me from Loans and Credit Cards 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!

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