J. Credit Negotiators

CREDIT NEGOTIATORS NOT ALWAYS THE RIGHT SOLUTION

They’re supposed to help you clear your debt, but can a credit negotiator actually do more harm than good? People often sign up with a credit negotiator thinking that they’ll end up paying off their debt for pennies on the dollars, while avoiding bankruptcy and keeping their credit intact. The theory is appealing, but according to Bankrate.com, things sometimes get ugly. Credit negotiators have to convince your creditors that partial payment is all they can hope to receive from you. If your credit isn’t trashed already they may ask you to stop paying bills. You’ll want to put the money you’d have spent on those bills, into a savings account to pay your negotiated settlement. You also have to make sure your credit negotiator arranges for your debt to be listed as paid in full on your credit report. Otherwise you may spend years rebuilding your credit. And credit negotiators can be expensive, so check out the fees beforehand. Also make sure the company follows federal regulations put in place to protect you. You can find that information on the Better Business Bureau website. There’s a link on my webpage.