Saturday, January 5, 2013

Next Step After Debt Settlement

Completing any form of debt relief program is a great feeling. Having your debts paid off, discharged or forgiven is a great sign that you can finally move on. Making the last payment on your debts through a debt settlement program is the closest thing to a new and clean financial slate.

So what are your next steps after crediting that final payment?
First thing you need to do is get proof that your debts has been settled and that you are already free of any and all payment obligations from the creditors. This could come in the form of a certificate from the creditors stating just that - you no longer have any payments due on your debt. It could be in any form of document provided it is in the letterhead of your creditor and that there is an authorized signatory confirming that statement.

The next step is to manage and rebuild your credit standing again. After a debt settlement program, it will reflect that your debts has been settled and not paid off. There is a big difference between the two. One effective way of fixing your credit standing is to maintain an account open, like a credit card. The idea is to prove that you can charge payments to your card but you now have the ability to make the payment when it is due.

Next is to make bigger payments in your other debts that were not covered in your debt settlement program. You might have missed a payment or two in the course of making payments for those under your settlement program. With the bigger amount that you can devote to payments, it would be a good show of financial maturity to increase or even send advanced payments to those outstanding loans.

Another is to ensure that you beef up your savings account. This is another great benchmark that you are on the road to financial independence and maturity after the debt settlement program. As future creditors and other lending institutions conduct a background check on your credit standing, making  credit accounts current, paying off other loans and having a big savings in the bank are great indicators that you can be trusted again.

Debt settlement can effectively get you out of debt but it takes a whole lot more than that to achieve financial freedom. It is up to you to maintain that financial condition. If you want to give debt settlement a try, call National Debt Relief or visit this link to know if this is the right program for you:

1 comment:

  1. This blog is really very informative and wonderful. Debt settlement will be fruitful for the person only when he/she has multiple debts and is delinquent on his/her loans. Debt settlement helps the person to reduce his/her debts by certain amounts. Some people think that it is impossible to get out of debt. But it’s not true. People can get rid of debt trap through debt settlement. However, do keep in mind that not all the creditors agree to settle the debts. In debt settlement, the debt negotiators mediate with the creditors/collectors to reduce the outstanding balance. In debt settlement, your account status will be updated as "Paid as Agreed" after the payment of debts. In debt settlement you will have to deposit some amount in that account every month. But the worst part of debt settlement is that, it hurts credit score in a negative way. The good thing of debt settlement is that it avoids bankruptcy and unfair collection practices etc.