Donaldson Williams Credit
Services
Offering
An Honorable Alternative To
Bankruptcy
Debt Settlement and Your Credit Score
Are you considering debt settlement, but concerned it may negatively impact your credit score? If a lower credit score is your main concern regarding debt settlement, read on for answers to some questions you may have.
First, you’ll want to check your credit score to be sure it’s as high as you think it is. You see, if you’re carrying high balances on your credit cards, with many of them being nearly “maxed out,” there’s a good chance that your credit score is only mediocre, at best. Worse yet, if you’ve made even one late payment, your credit score will be reduced, as well.
If you find that your credit score is fairly decent, and you’re worried about your credit file reflecting a lower score as a result of debt settlement, you have a legitimate concern.
Unfortunately, most creditors won’t even consider working with you until your accounts are near “charge-off” status. At that point your credit report will show that your accounts are 180-210 days delinquent, and you can expect your credit score to be significantly reduced.
How long will you need to tolerate a lower-than-normal credit score? Well, that depends on your ability to generate sufficient funds to pay the agreed-upon settlements negotiated and reached with your creditors. Generally, your score will improve when zero balances are reflected on your credit report – usually 30-90 days after a settlement has been paid in full. Of course if you become a client, we believe in being proactive to ensure that your account status is updated with the major credit bureaus sooner rather than later, therefore, Donaldson Williams forwards your settlement documentation free of charge, to all three credit reporting agencies, as well as a request to update your records immediately following a settlement. Your score will continue to improve as the debt settlement process is further behind you, and can expect a score of at least the mid-600 range within twelve months of paying your accounts off through debt settlement, provided your mortgage and installment loans do not reflect any late payments.
If you’re struggling each month to make the minimum payments on your accounts, and debt settlement seems to be your best option, a temporary reduction in your credit score probably shouldn’t influence your decision too much. Rather, peace of mind and the ability to pay your bills should be your main concern. If you take a realistic look at your finances, you may very well see that you’re in deeper than you thought. I urge you to gather all of your bills and add up your monthly expenses – including your credit card bills, and then minus your credit card bills. After you’ve made the comparison, you’ll likely understand that the benefits of debt settlement easily outweigh the few months you’ll need to deal with a reduced credit score.
If you should have any questions, or need assistance, feel free to contact us. For a free consultation, click here. Remember, Donaldson Williams, Inc. charges absolutely no monthly fee and no set-up costs because we work on a contengency basis, and you don't pay a fee for our services until after a satisfactory settlement has been reached with your creditor(s). |
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Providing
Customer Service
you Can Rely On
"I'm not sure how you
work your magic, but thank you for everything you have done.
I would highly recommend your company."
(C.C.
Attorney)
"Marie, we can't thank
you enough for everything you have done for us. We
had a
lot of question
throughout this entire process and you have been so patient and
understanding. We never felt alone because we always knew we
could call or send an email and you would get right back to us.
Excellent customer service and an incredible end result. We
really do appreciate it!"
C.E.H (Insurance
Adjuster)
"Again I find myself in awe of how you have
been able to help. Thank you."
G.B.
(Educator)
"Outstanding! Thank you for investing the time
and attention to get this
outcome- we truly appreciate your
help and kindness."
M.M. (Regional
Manager)
"I appreciate all you have done for us. I
would recommend your company in a heart beat to
anyone that has been experiencing
problems such as our own."
J.M. (Q.I.
Supervisor)
“Thanks so much for all you did for us. If we hadn’t found Donaldson Williams we would have surely filed for bankruptcy. You were straightforward from the beginning and we ended up with better results than we thought possible. Every one of our phone calls was returned and your professionalism proved to be unmatched. Again, thanks for saving us over $30,000 and helping us avoid bankruptcy.”
(E.Z. Carpenter)
“Hi…I just wanted to drop you a line to let you know that we appreciate all you did for us during the worst financial crisis we’ve ever faced. I’m so glad we found you and decided to hire you…your dedication to helping us through a difficult time literally saved us thousands of dollars, as well as allowed us to end our financial problems with dignity and ease.”
(D.D. Communications Supervisor)
“Thank you for your help and your patience. Not only did you save us $27,000, but you were very patient with our questions and worries. You really helped to get us through a very bad financial period. Thanks again!"
(J. G. Operations Manager)
"Thanks to you I can sleep again and I can answer my phone again. You were so helpful and kind and there aren't enough words to describe my appreciation. The savings I gained through your program was something I wouldn't have thought could be achieved..."
(E. H. Teacher)
"Enclosed is a check for my final account. Thanks for all your help...it's finally over, but I wanted to let you know that we're so happy we chose your company. We started out scared to death, and here we are paying off our last account. You've been great through this whole mess, and we want you to know that we'll gladly recommend you to other people in the same situation."
(D. H. Administrative Assistant)
"Preston and I cannot thank you
enough for all your hard work (HFC-especially) in helping us
move towards debt freedom. A weight has been lifted and we are
finally free. Thanks again."
((P.G. Systems
Technician)
"Thank you
for being a caring person and having compassion and empathy
there are so few left in this crazy world. I know you will
have an abundance of blessings in your life. You have
helped us more than you'll ever know and I feel
like we were sent an angel when we met you. Truly I
know it sounds cheesy but it's the honest truth from
the bottom of my heart thank you."
(B.D. Nurse)
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