• 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 Fast Can You Get Out Of Credit Card Debt in 2010?


NEW YORK - MAY 20:  In this photo illustration...
Image by Getty Images via Daylife

Even though Christmas is right around the corner, it’s hard for me to get excited about the holiday season as I have so much credit card debt that I would be happy to give away to someone else. And I know I’m not alone. And you are not alone if you are struggling with massive credit card debt that it’s hard to think about anything else. But there is hope. There is plenty of help out there.

To start with, you can get a free debt analysis from Care One Credit counseling. They have experience with over 4.5 million people working out debt solutions for their problems. They have a custom solution for you. You can get a free debt consolidation quote online with no obligation and find out how much you can save. You may just find out that debt consolidation is not the right program for you.

Once you realize that you can get out of your credit card bills faster than you thought you could, the sun may shine a little brighter for you.

Why debt consolidation over bankruptcy or debt settlement? Because of the massive prevalence of scams out there, you may feel that either one of these options is not for you. And that is okay. Debt consolidation can help you with your medical bills, student loans, unsecured personal loans, and of course your credit card debts. You do not have to do anything you do not understand or feel comfortable with. You can get a free debt consolidation quote and find out what you can save per month with a lower interest rate and how soon you can get all your bills paid off.

You can get a fresh start in 2010 and beyond.

Have a great day!


Debt Cures Reviews

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Debt Consolidation vs Debt Settlement vs Debt Management

With the many ways there are to get out of debt it can sometimes be hard to choose which way is right for you. Whichever way you choose you’re looking to do the same thing you’re trying to lower your monthly credit card payments, you’re trying to reduce your interest rates if possible, you’re trying to waive late fees and other fees the banks try to throw on you, you’d love to eliminate the collection calls early in the morning and late at night, you want to avoid bankruptcy at all costs, and most importantly you want to be debt free.

To start with let’s talk about debt consolidation. Debt consolidation, you get all your bills and consolidate them into one single payment. You do not have to get a debt consolidation loan to use this method. In many cases you are able to lower your monthly payments, reduce your interest rates, and get rid of the annoying that collection calls.

Learn from more than 166000 people how they got out of debt

You also have Christian debt consolidation which is similar to debt consolidation their also incorporates Christian values to help you pay off your debt.

Next, let’s talk about debt settlement. This process allows you to negotiate with your creditors and reduce your outstanding balances by up to 40 to 60%. The goal is to have you debt free in less than 36 months. This is two years sooner than a Chapter 13 bankruptcy. Debt settlement is an alternative to bankruptcy. The effects to your credit report and credit score are similar except that bankruptcy is in the public record whereas debt settlement is not.

Free Help With Debt Problems

Finally you have debt management. This involves getting debt assistance from a credit counseling company through a payment plan with your creditors that can reduce your interest rates and reduce or possibly waive some late fees. This is called a debt management plan or DMP.

So which one should you go with? Again since we are talking several thousand dollars worth of debt it is not an easy decision to make. Whichever method you choose can affect your financial life for several years to come in good ways and in bad.

I’ve recently partnered with debt consolidation care, an online get out of debt community that offers a free debt counseling session to analyze your financial problems and see which method would work best for your situation. They have helped over 169,000 people pay off their debt. You can talk to them for free and get a customized solution for you. They can help you with these debt cures.

Free debt counseling with DebtConsolidationCare

Talk to you soon,


Debt Cures Reviews

Debt Cures: Care One Credit Counseling vs Credit Solutions


Here we are almost the middle of February already and our debt problems are getting worse with each new day.  There are layoffs, businesses closing and credit card companies putting the squeeze on us little guys. If your credit card company is not trying to increase your interest rate, they are trying to restrict your credit limit so you cannot charge anymore.

It’s time to look at some debt cures to solve your credit debt problems.  Today, I wanted to compare Care One Credit Counseling vs Credit Solutions.

Care One Credit Counseling does just that – credit counseling.  They will give you a free consultation and determine if debt consolidation is your best way out of debt.  Not everyone will qualify for one of their plans.  The good thing about CareOneCredit is that they will work with you if you have just $2500 in credit card debt. Most companies will not work with you unless you have $7500 or $10,000 or more in credit card debt. What CareOneCredit can do is spread out your debts over a longer period of time and reduce your interest rates and get some fees waived. You can pay less when you use credit counseling and debt consolidation than paying it all off on your own. The fee for CareOneCredit Counseling varies by state so there is no number I can give you of what to expect to pay. You can talk to them for free and find out how they can help you before you sign up with them.

Click Here To Talk To Care One Credit Counseling Free

Now let’s talk about something different – debt settlement.

(EDIT: 5-9-09) Credit Solutions has had some legal issues as of late so I can no longer recommend them. One recommended company that offers debt settlement is Debt Shield. You can get a free consultation and see how much money you can save. Debt settlement is a different program altogether than debt consolidation. The goal of debt settlement is to negotiate with your creditors and work on reducing your total outstanding debts before you start paying anything. In some cases, you can reduce what you owe by 40-60%. Your mileage may vary. It is a much better option than bankruptcy.

Both are free to talk to and I would advise you talk to them and see what kind of savings you can expect from their plans.

Click Here To Talk To Care One Credit Counseling Free

Click Here To Talk To Debt Shield Free

Thank you for reading,


Debt Cures Reviews