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HOW WILL DEBT RELIEF AFFECT MY CREDIT?

NEW YORK DEBT RELIEF ATTORNEY EXPLORES THE ANSWER

When your costs of living start to overcome your monthly salary, debt will soon follow if nothing is done about it. There are multiple debt relief options an individual can pursue, and the said can be said about businesses that fall into debt. How will these options affect credit scores, though? Is it possible that debt relief is not worth the damage it could do to credit?

At the Law Offices of Simon Goldenberg, PLLC, our debt relief lawyer in New York can help you learn your legal options when it comes to seeking a way out of debt. Perhaps more importantly to some clients, our firm can explain how your decision will affect your credit score.

Call toll free (888) 301-0584 to speak with our team directly.

USING A PAYMENT PLAN

If your debt has not become outright overwhelming, you may be able to use a debt repayment plan to settle the matter.

In a typical payment plan, you must:

  • Repay all or most of your debt
  • Make all payments within a set amount of time
  • Exhibit improved spending behaviors
  • Set money aside each month into savings

If you do not break the terms of your agreement, the impact on your credit score may be minimal. Becoming delinquent on your payments will trigger a notification to consumer reporting agencies that will impact your credit further. If given the chance, taking a payment plan and sticking to it may be your best option if you are concerned heavily with your credit score.

USING BANKRUPTCY TO ELIMINATE DEBT

Bankruptcy is a completely legitimate way to seek debt relief. No longer is it surrounded by a negative social stigma that was misplaced from the beginning. For the most part, however, bankruptcy can put a noticeable dent in a person’s credit score. This is caused by creditors initially losing confidence in the filer’s financial control. Through dedication and planning, it may be possible improve your credit after bankruptcy.

In some circumstances, a successful bankruptcy can actually increase a person’s credit score. If the debt was overwhelming and questionable, the discharge can cause a raise in credit, rather than the expected drop. Keep in mind that this is a case-by-case type of solution.

DEBT RELIEF SHOULD BE A PRIORITY

While it might be unnerving to know that seeking debt relief could impact, possibly just temporarily so, your credit score, it is likely far worse to do nothing at all. If you just continue to fall into debt without any plan of fixing it, your credit will be dismantled all the same.

Discover what you should do next by contacting our New York debt relief attorney and scheduling a free case evaluation today.

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