Do I Have to Be Behind in Payments to Qualify For Debt Settlement?

Every day you see countless ads for debt settlement programs that promise to get you out of debt and back on the right path in only a few months. While you would love to do that, you are only a month or two behind on one card and the others are considered to be on-time. You have a lot of debt, but so far are managing it just right. Would it benefit you to take this financial obligations to the credit management places and try to get some help or do you have to wait until you are three, four or even more months behind in payments before you qualify?

In some cases, it will not be the settlement company that will disqualify you, but the creditors themselves. While you can call and talk directly to each credit grantor individually if you suspect you are about to fall behind, they will generally refuse to allow a settling if you are not at least four months behind. The options are to begin working with the a company with a projected amount of past due debt, or to work with the creditors to rework your payment amount and schedule.

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It is not recommended that you simply stop paying on the amounts that are due until you do qualify for the program. Keep in mind also that some creditors prefer to take care of these issues in house and will not work with a third party program no matter what. Don't make things harder than they have to be for yourself, work within the system even if you feel it is imperfect.

If you can qualify for a settlement of debt before you fall behind, it is all the better for your credit score and your own sense of well-being.

By the way, by researching and comparing the best debt settlement services in the market, you will be able to determine the one that meet your specific financial situation. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

Do I Have to Be Behind in Payments to Qualify For Debt Settlement?