How Can “Credit Card Debt Relief Program” Hurt My Credit?
Understanding Debt relief program
Credit card debt relief program itself is an indication that the consumer doesn’t have sufficient funds to repay or he is unable to be pay in time an installment and requires credit card debt help. So, whenever he goes for any future credit, the rate of interest will high. In one possibility amount of credit which he requests him may not be available to him. In a worst-case scenario, he may be denied any further credit. Even the benefit of the extended tenure of the loan or how to repay the loan in deferred installment may not be available. The rating agency monitors the behavior pattern of a person in terms of his intention to repay, his capacity to repay and his past borrowing habits.
The best thing what the consumer can do is to keep his credit Low because the rate of interest which is charged by the credit card is exorbitant. Credit card can never be useful and significant means of borrowing compared to a mortgage loan or a consumer durable loan or business loan. In fact, the highest interest charged in terms of any loan is on credit card, not to speak of fines, penalties and other hidden charges. Consolidation of credit card through balance transfer offer may be a short term option to focus and discipline, yet, at the end of the day, repayment is important.Companies like Momentology designs some real strategies that would really work wonders for you.
Consequeses of having Debt relief program
Such debt relief program may however only cover unsecured borrowing. Mortgage backed loans or securities back loan has to be taken care of personally. Delay/ default/ restructuring of any debt including credit card directly impacts credit scores.
How will it hut you credit and what you must do to maintain it
Debt relief program requires a lot of discipline and commitment. Tracking your progress through monthly statements, avoiding new debts, keeping proper record of dues and repayment schedule after planning cash flow Vis a Vis personal and other living expenses. Once debt is repaid, it is important to update the national credit reporting agencies so that correct and higher scores are updated.