If you\u2019re in over your head in debt it may seem logical to not pay it. If you can get debt relief, by all means you should take it, right?<\/p>\n\n\n\n
Wrong.<\/p>\n\n\n\n
Not paying your debt<\/a> is much worse than paying it off as agreed. Even if you need a credit counselor<\/a> to intervene on your behalf, get you lower rates, or a payment arrangement, as long as you pay the debt, it\u2019s a lot better for your credit.<\/p>\n\n\n\n Here\u2019s why.<\/p>\n\n\n\n\n\n\n\n A big part of your credit score is your payment history. If you don\u2019t pay your debt, you don\u2019t have a payment history and you defaulted on an agreement, both are bad for your credit.<\/p>\n\n\n\n You want to show that you\u2019ll make good on your debt even if it\u2019s at a negotiated rate or a different arrangement. Even a remark on your credit report \u2018paid as arranged\u2019 is better than not paying your debt at all.<\/p>\n\n\n\n Chances are that you are in debt because the interest keeps accruing. The minute you don\u2019t pay the balance in full, interest accrues, and then interest accrues on top of that and it keeps going.<\/p>\n\n\n\n If the rates are 20%+, it\u2019s impossible to get ahead of the debt. This is when most people throw in the towel and work with a trustee to \u2018get rid of the debt.\u2019<\/p>\n\n\n\n Instead, a credit counselor arranges for lower interest rates, sometimes as low as 0%. This leaves you much more room to tackle the principle, pay your debt as agreed, and get out of debt.<\/p>\n\n\n\n Everyone gets in over their head sometimes. But it\u2019s how you treat it that matters. If you just bail out of the debt, it doesn\u2019t show financial responsibility. You show that you run when the going gets tough and credit bureaus and lenders don\u2019t\u2019 like that.<\/p>\n\n\n\n If you stick with your debts and turn to a credit counselor for help, you show financial responsibility. You tell the credit bureaus that you\u2019re willing to make good on your agreement even if it\u2019s at a negotiated rate. The payments will help you build a credit history, a good reputation, and a better credit score.<\/p>\n\n\n\n It can be overwhelming to be stuck in debt, but it doesn\u2019t have to be. Writing your debt off, though, is one of the worst decisions you can make. It will hurt your credit and make it difficult to get credit in the future.<\/p>\n\n\n\n Instead, contact Creditaid and get a free credit consultation. We\u2019ll tell you how we can help you make your debt ore manageable yet not overwhelming. With our services, we can help you get lower interest rates to pay your principal off and not pay as much interest. Contact us today for your free consultation.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" If you\u2019re in over your head in debt it may seem logical to not pay it. If you can get debt relief, by all means you should take it, right? Wrong. Not paying your debt is much worse than paying it off as agreed. Even if you need a credit counselor to intervene on your … <\/p>\nNot Paying your Debt Hurts your Credit Score<\/strong><\/h2>\n\n\n\n
A Credit Counselor Arranges for Lower Interest Rates<\/strong><\/h2>\n\n\n\n
You Show Financial Responsibility Paying your Debts<\/strong><\/h2>\n\n\n\n
Final Thoughts<\/strong><\/h2>\n\n\n\n