Repair Your Credit | Bankruptcy? (Pt. 5)

Consider the consequences

You know what you’ve gotten yourself into. Your debts are very real, and it will take effort and negotiation moxie to get your finances to a better place. Now begin to “Repair Your Credit!” CLICK HERE if you missed part four of this article. If you don’t keep up, your credit cards will come alive at night and nibble at your fingers. No credit repair in the world can replace a good set of digits.

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First, negotiating down your debt will not immediately enable you to finish paying off what you owe and walk away with a spotless credit rating. Your credit score will be negatively affected for a period of seven to ten years before the black marks finally drop off your credit report.

Therefore, you must take careful consideration of your future financial plans. If you are already defaulting on payments, your credit is already blemished. Late payments of 30, 60, and 90 days have already been reported to the credit bureaus and will hurt your FICO score for at least 36 months before they disappear.

The big question for you then would be, “is it worth it?” Depending on your debt load, it may be.

Bankruptcy may be your best option

Another thing to consider if you have chosen to negotiate your debt down is how much will you still owe once the debt is renegotiated. It hasn’t gone away; you still owe. How long will it take to pay off the new balance? ... click here to read the rest of the article titled "Repair Your Credit | Bankruptcy? (Pt. 5)"