I am sure you are wondering about what it takes to repair your credit and improve your FICO score. Well, you have indeed come to the right place. Credit card debt repair is by no means a simple process, but certainly a feasible one if you go about it the right way. By following these simple steps, you will be well on your way to improving your financial situation.
The first step of credit card debt repair is to assess the situation. To do this, you must run your credit report and see exactly what is going on. Are your accounts behind or are they current? If they are behind, you are in a perfect situation to negotiate on the balances and settle for less than what you actually owe. But if you are current, the creditors will be unwilling to settle for less. In this case, it might be a good idea to stop making payments to them. If you have a low FICO score already, it doesn’t make much sense to keep making minimum payments on an unsecured debt. The idea here is to become completely debt free as soon as possible. The most affordable way to do so is by using a debt service that provides debt settlement
Debt Settlement can be done on your own, but it would be advisable to hire a professional debt service company to handle the process for you. Most creditors and debt collection agencies are highly skilled in the art of negotiation and you may become frustrated while trying to deal with them. Good debt settlement companies generally are able to reach settlement agreements of 20-40% of what their clients originally owed. The best debt settlement companies do charge a fee, but the money they save you more than covers that.
Once your accounts are paid off through debt settlement, they will report on your actual credit report as 'settled in full'. The last step to credit card debt repair is to have these 'settled in full' accounts removed from your credit report entirely. Some debt settlement companies have attorneys on staff that can offer this service to you. The attorneys will work with the credit bureaus directly to have these particular accounts removed permanently. Once this is completed, your FICO score should increase dramatically.