Credit Repair & Debt Negotiations
The Fundamentals
Credit Repair Services. Does it Fully Resolve a Delinquent Debt?
Credit Repair is a process of correcting errors and misleading information being reported to your credit by your creditors or data furnishers. Items removed from your credit reports by the credit bureaus do not necessarily resolve the delinquent debt issue.
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Credit Reporting & Delinquent Debt
A common and costly mistake many consumers make when hiring a professional to restore their credit reports is failing to understand the differences between credit reporting and debt liability. We must understand the difference between the two, and how it can affect the process of restoring their credit reports.
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When the credit bureaus delete a disputed item from a credit report, it usually stems from a creditor or data furnisher failing to respond to the dispute, or failing to provide enough information to sustain the dispute.
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Resolving a delinquent debt and successfully having it removed from your credit report is a sure way to prevent the debt from ever reappearing again in the future, either in the form of credit reporting or even legal action that could be taken against you by your creditors or debt collectors.
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Debt Negotiation Services Offered by Falcon Credit
Debt Negotiation is a process of negotiating the balance owed on a delinquent debt directly with a creditor or debt collector, for a lump sum settlement payment.
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Generally, to achieve the best results (highest reduction in balance owed), you should be prepared to pay the new negotiated balance in one payment. Although some creditors or debt collectors may accept a short-term repayment plan.
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Example: You owe ABC Bank $5,000.00 from an old credit card that went un-paid and was charged-off. Falcon Credit enters contacts ABC Bank on your behalf and negotiates a reduced balance owed on your ABC Bank credit card.
Falcon Credit works with your creditor until it is able to obtain a written lump sum settlement offer from ABC Bank. Once you receive the Settlement Offer Letter, you simply contact ABC Bank to make arrangements to pay the new reduced balance (the Settlement Offer) to resolve the delinquent debt and close the account.
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Falcon Credit can help you save between 50-75% of your current owed balance on your delinquent debts.
How is Debt Negotiation Different from Debt Consolidation?
Debt Negotiation is a process of negotiating a reduced balance on your delinquent debt, for lump sum repayment, directly with your creditor or a debt collector.
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Debt Consolidation is generally a long-term repayment program. Someone offering this type of service will advise you to discontinue making regular payments to your creditors and begin making a lower monthly payments to them instead. Then, after a long period of time (generally years), they will use a portion of the money you paid them to negotiate new terms with your creditors.
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Things to consider:
-Are your payments "Current" on your open credit accounts?
-Is your credit rating fair, good or excellent?
-Is your account standing positive with your creditor?
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If you answered 'Yes' to any of the above, then you should carefully consider the following:
-Your payments will report "Past Due" on your credit reports until the time the debt is finally resolved (settled).
-Your credit rating will take a negative impact.
-Your creditor will likely initiate collection proceedings against you.