Credit repair and debt settlement are two ways that consumers can improve their credit scores and reduce their credit obligations. There are other financial services that consumers can use that will complement those repair and settlement services, and offer further assistance in getting debt under control. As you plan your credit managing program, you should be aware of the many services available.
Credit Counseling
A credit counselor is someone who can help you put together a personal budget and help you develop a plan for saving money and paying off any remaining debt. Once you have your credit repaired, you will want to take the necessary steps to keeping that new credit rating as high as possible. With guidance from a credit counselor, you will be able to identify the areas where you can cut back on spending and apply extra money to savings and other debt.
Debt Consolidation
Debt settlement is the process of negotiating a lower payoff amount with creditors. It is done so that you can get your debt down to a level that you can handle each month. But when the process is done, you will still be left with several small accounts that you will have to make monthly payments to. A debt consolidation service will help you to pay all of those bad debts off and leave you with one monthly obligation. It will help you to satisfy the negotiated debt at an accelerated rate, which will show each debt as satisfied on your credit report.
Accountant
A certified professional accountant, or CPA, can be a tremendous help when it comes time to recover from debt settlement or to maintain your credit score after it is repaired. You can meet with a CPA on a quarterly basis to discuss any potential tax breaks you should be watching out for, any financial assistance programs you can take advantage of and better ways to invest the money you have to get a maximum return. This will help you to apply more money to paying down your negotiated debt, and it will also help you avoid any tax pitfalls that may come from debt negotiation. For example, the amount that is forgiven on your debt during a negotiation may be taxable as income. A CPA will help you plan for this and make sure you find workable solutions to your tax issues.
Financial Planner
Once you have your debt under control and your credit score repaired, you will want to start planning for your financial future. A financial planner will help you to create new accounts that will give you ways to save for future events such as retirement or the purchase of a home. You can save for your future without borrowing against the credit that you just had repaired and without missing payments on your negotiated debt.
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