Before answering this questions, we need to understand what exactly a credit rating is and how it is determined.

Put simply, your credit report is determined by your history of borrowing and repaying. If you pay your bills on time, and manage your debt well (meaning you don’t live beyond your means, accruing more debt than a small per cent of your income), your credit score will remain healthy. Other things, including your profession, and stability or lack thereof, also affect your credit report. When you apply for new credit, or for another type of loan, the lender or creditor checks your credit report to determine your creditworthiness, or how likely you are to pay your debt back. If your credit is good, you generally benefit from more loan opportunities, and lower interest rates.

Unfortunately, taking part in the debt settlement process will damage your credit rating. There is no way to avoid this for the simple reason that you stop paying your creditors. However, if you are having a difficult time making payments on time, your credit may already be bad. Keep in mind that other debt solutions, including Consumer Credit Counseling, and Chapter 13 Bankruptcy, also negatively affect your credit, usually more so than debt settlement because they are more prolonged. This means that it is longer before you are out of debt and on your way to restoring your credit. Also, declaring bankruptcy leaves a permanent mark on your credit record; debt settlement does not.

Upon completing the debt settlement process, you can quickly begin making efforts to restore your credit. The easiest way to do this is to pay your bills on time and limit the number of credit cards you have, and the amount that you use them. There is no quick fix for your credit score, only time and financial discipline.

The debt settlement process is a complicated one, which is why it is usually in your better interest to hire a professional to steer you through it. Once you’ve done your homework and chosen a credible and reputable debt settlement company or lawyer, what should you expect from the process?

Before any of the settlement negotiations begin, the firm will perform a complete analysis of your debts. Not all debts can be included in debt negotiation. Secured debts, which are debts that are backed by collateral to reduce the risk of the loan for the lender, as well as student loans, tax debts, and a few others, typically cannot be negotiated. Debt negotiation works best with unsecured debts, meaning there is no collateral involved. Examples of unsecured debt include credit cards, lines of credit, and medical bills.

After this is completed, you have two options to begin the settlement process. You can either put a lump sum of money into a trust account to begin negotiations with creditors, or, if this is not a possibility, you can make large monthly payments – at least 4% of your total debt – into a trust account. At this point, you stop making payments directly to creditors, and only into the trust account. Once there is sufficient money in your account to settle a debt, the firm or company begins negotiations with your creditors, one at a time until they are all settled.

“Trident helped me settle my debt without incident.  Their professionalism was outstanding and helped me get through a time of stress.  I was very surprised how much money they were able to save me.  I would recommend them to anyone looking for help getting out of debt! “   Chris T.

Lionel M. came in with $35,200 of credit card debt.  He was able to give us a lump sum to settle with.  We settled those debts, including our fees, for $22,200, saving him $13,000.

Lawrence A. had $71,000 of credit card debt.  He also had a lump sum to settle with.  We negotiated those debts, including our fees for $44,000, saving him more than $26,000.

Susan F. has $50,000 of credit card debt.  She does not have a lump sum debt settlement payment but is able to make a monthly payment of $2000.  (The monthly payment she makes is 4% of her total debt, and this is the amount we require for monthly installment clients.).  With this 4% payment, we can have her out of debt in less than 18 months.

Dave R. wanted to refinance his home to pay off credit cards at a lower, tax-deductible interest rate, but was denied by the bank.  The bank said his FICO score was too low.  Further complicating the issue, most mortgage companies only lend 80% of the home’s value.  In his case, he could only pull out $18,000, where he had $30,000 in debt with 2 credit cards.  We were able to refer him to a mortgage company who could get him qualified and charged a fair rate of interest.  With the $18,000 he pulled out of his equity, we settled the $30,000 of debt he had.

Lastly, we offer a bankruptcy referral resource.  If you need a bankruptcy attorney in any state.

When you find yourself in debt and struggling to make ends meet, it can seem   overwhelming.  Trident Debt Solutions is here to help you through these difficult financial situations and provides a free, no obligation consultation.  Even if we cannot help you, we will reply with your best option.  For your protection, we do not ask for account numbers or your social security number.  We never harass- but if you are concerned, you may request a reply by email only.