Make sure the matter is settled6 of 7If you pay a debt settlement, find out if it shows up properly on your credit report. Jackey says some creditors fail to report settlement payments to credit bureaus even though they are required by law to do so, leaving the consumer's credit report showing their accounts as indefinitely delinquent."Sometimes a client will come in to us with a credit report that doesn't even show that a portion of the account was written off. It shows that the full balance is still owed," Jackey says.Also, make sure that creditors stop calling and sending debt collection letters in exchange for your payment plan, she says. Related Articles:Types of debt reliefPros, cons of debt reliefLimits of debt settlementDebt plan hurts creditRelated Links:Manage or settle debtFighting debt collectionGet my credit report?Dealing with old debts advertisement
If you pay a debt settlement, find out if it shows up properly on your credit report. Jackey says some creditors fail to report settlement payments to credit bureaus even though they are required by law to do so, leaving the consumer's credit report showing their accounts as indefinitely delinquent.
"Sometimes a client will come in to us with a credit report that doesn't even show that a portion of the account was written off. It shows that the full balance is still owed," Jackey says.
Also, make sure that creditors stop calling and sending debt collection letters in exchange for your payment plan, she says.