• Lower your monthly payments
  • Reduce stress and live your life
  • Avoid personal bankruptcy court

Help! Debt Settlement Gave Me A Low Credit Score!


In the past I have talked about Debt Settlement as a “Debt Cure” for your credit card debt problems. And for some people it is. But before you decide on this course of action, be aware that using debt negotiation with your creditors to get a good settlement offer can result in your FICO credit score dropping a few hundred points.

If you are scared of ruining your credit to get out of debt, then maybe debt consolidation is better for you.

Take a look at what has happened to my credit score over the past 6-8 months since I started a do it yourself debt settlement program:

Good FICO Credit Score Before Debt Settlement

Above is my FICO credit score before I missed payments on my credit cards due to a severe financial hardship. And below is what my credit score looks like now after I have settled with 3 out of 4 creditors.

Bad FICO Credit Score After Debt Settlement

Debt settlement has ruined my credit score!

Are you worried about keeping your credit score high? Have you seen all the commercials about how you need to maintain a high credit score to keep your insurance rates low, your credit card rates low, and your chances of getting a job?

I’ve even posted some of those on this blog. And if you are not going through a sudden job loss or unexpected medical bill then you may not need a drastic debt solution as debt settlement. And debt consolidation may be all you need.

Now here’s something else I want to show you:

My credit card debt before debt settlement: $61,713.xx

And here is how much credit card debt I have now after settling with 3 creditors and getting a balance reduction with a 4th:


I settled $43,250 settled for $13,054 and reduced a 4th balance from $10,160 to $7778.

I kept one card out of the program which I needed to pay for living expenses and business expenses and this has a balance of around $8300.

I am still not out of my severe financial hardship but eliminating over $43,000 in credit card debt in 6 months will go a long way towards helping me recover.

That cuts my monthly expenses by over $860 a month based on the 2% balance monthly minimum payment.

Would an extra $860 a month help improve your financial situation?

And now that I have $43,000 less in credit card debt, I am able to work faster on rebuilding my credit score. I can start making my payments on time again.

My debt to income ratio is a lot lower now.

In a couple short years I will have a healthy credit score again and will qualify for a low rate mortgage loan or car loan or even a credit card.

Debt settlement is not for everyone. If you have a small amount of credit card debt then it is not worth ruining your credit score over.

Get help from friends and family, consolidate your debts, stop charging, read the Total Money Makeover, heck, read Debt Cures I and II, and get out of debt.

I am just sharing with you my experiences and hope this can help you decide on if do it yourself debt settlement is the choice for you.

Talk to you again soon.

If you have any feedback, comments, or experiences let me know in the comments box below.

Thank you,


Debt Cures Reviews

How do you plan to get out of debt? Win Debt Cures and Total Money Makeover


Tell me how you plan to get out of debt.  I want to help others get out of debt.  Share your plan for getting out of debt or how you have freed yourself from credit card debt and hopefully it will inspire others who are struggling to get out of debt themselves.

The best story gets a free copy of Debt Cures AND The Total Money Makeover!

I will run this contest for a month and at the end of that month I will announce the winner here in this post and send you a free copy of both Debt Cures AND The Total Money Makeover.

So send in your best tips and plans for getting out of credit card debt, reducing what you owe, lowering your interest rates, etc.

Thanks and have a great day!

Looking forward to your helpful submissions.


Debt Cures Reviews

Debt Cures – How to get rid of debt


I started this site about Debt Cures because I wanted to educate people on Kevin Trudeau’s latest book that can show you how to get rid of debt.  You can read the 4 part Debt Cures reviews

Debt Cures

What makes this book so controversial is KT’s past.  So right away once people find out he has a criminal record they think the book is a scam.

Does that mean Debt Cures is a scam?  Not necessarily.  I give away copies of the book each month.  There is much to be learned inside.

Many of the comments on this blog want to know how to reduce and get rid of all the debt they owe.  In the book, you will learn what steps you need to take to reduce your interest rates, eliminate some of your older debts and how to avoid bankruptcy.

That is just like he said.

He also says that you have so much debt and it’s not necessarily your fault.  Here’s some stats I read the other day:

“VISA spends over $600 million each year and growing on advertising their credit cards to you and me.”

“MasterCard spent over $500 million in the first 6 months of 2008 advertising their credit cards and their Priceless ads to get you to use their credit cards.”

“Equifax earned almost $2 billion dollars in revenues selling your credit information in 2007.  They sell your credit info so credit card companies can better target their marketing to get you to buy and buy and buy.”

And this is just one of the credit reporting agencies.

I could go on and on.

What does this have to do with getting out of debt?

They don’t make it easy for you to pay off your bills when they spend so much money on advertising tempting you to buy more stuff and pay later.

It’s hard to go anywhere and not see an ad for VISA or MasterCard.

So love him or hate him, Kevin Trudeau has a point in Debt Cures about how “they” wish you stay in debt forever and miss your payments and pay high fees and high interest rates.

He spends several chapters agitating you and making you mad about some of their practices.  If you just read the book and become aware of their deceptive practices and practice better spending habits then the book will have paid for itself.  Right now you can get it on Amazon for about $17.

What about if you don’t want to buy the book?

There are plenty of alternatives to Debt Cures.

If you just want to reduce your debts through debt consolidation then I would recommend you talk to CareOne Credit.

If you would like to learn a system about paying off your debts on your current income and turning those debt problems into wealth then I would recommend you take a look at John Cummuta’s Debt to Wealth program.

If you want to read a book other than Debt Cures that teaches you how to get rid of your debt then I would recommend you read The Total Money Makeover.  It’s the other book I give away each month.

Let me know if you have any questions about the book or any other debt related topic.

Thanks for reading.

Have a great day!


Debt Cures Reviews

Win a free copy of The Total Money Makeover book by Dave Ramsey


I would like to give away another debt related book that has several positive reviews and success stories. This month, I will give away a copy of Dave Ramsey’s Total Money Makeover. Several people have commented they enjoyed this book and recommended it over Debt Cures.

Dave Ramsey's Total Money Makeover

Same way to enter as last month, signup for free for my Debt Cures Reviews Newsletter, confirm your email address, and you’ll be entered to win. If you signed up last month you are already entered. Click here to enter

At the end of February, I will send an email to the winner and get their information so I can send them the book.

Last month’s winner – Phillip – with a gmail email address has not contacted me back with his mailing address, so if you’re reading this Phillip, I need your mailing address to send you the copy of Debt Cures for January. Phillip, you can contact me here.

Thanks and have a debt free day!


Debt Cures Reviews