5 Tricks to Help Debt Settlement Clients Looking for Better Credit Results Fast

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April 20, 2017 | By RGR Marketing Blog

How to Get to Approval as Quickly as Possible

Getting their finances in order prior to applying for a home loan is an ideal situation that many prospective homebuyers, for whatever reason, cannot seem to rise to. For those debt resettlement clients looking for the quickest way to repair their credit and hit the score that will get them the best interest rate possible on a mortgage loan, the following five tips and tricks should help.

1 – Focus on One Bill at a Time

While it’s true that your overall debt to income ratio matters more than how many open debts you have on your credit record, both elements do still matter.

One great strategy for paying down debts rapidly is to cover the minimum payments on all debts while concentrating whatever extra can be spent to pay down debt on one bill at a time.

Once that bill is paid, the amount that was devoted to it should be added to the minimum on the next bill and so on, until everything is paid. This will help reduce the number of accounts that are open as rapidly as possible. Bonus tip: focus on the debt that has the highest interest rate first, or read on to learn more.

2 – 3 - Start With the Highest Interest Rate or Start With the Lowest Balance

How to choose which open account to begin with can be challenging for many clients. There are two schools of thought when it comes to the order that is most beneficial when paying down outstanding accounts in an effort to boost a credit rating.

One school of thought has you beginning with the account that has the highest interest rate. In cases where the number of outstanding accounts is few, this will save you the most amount of money in the long run.

The other school of thought has you beginning with the account that has the lowest balance, paying it off first, and then devoting that monthly expenditure to paying off the next highest balance.

In cases where the debtor has many smaller outstanding accounts, this strategy will provide the quickest boost to their credit rating as it improves their debt to income ration while also cutting the number of open accounts they have.

4 – Avoid Costly Debt Consolidation Services and Negotiated Settlements

Debt consolidation and debt settlement through negotiation are two robust ways to trim unwanted debt and unnecessary credit accounts from your record. Unfortunately, they are not always the best ways to boost your client’s overall credit score.

Many debt consolidation services are for-profit companies that benefit from keeping consumers in debt, and negotiated settlements put a different kind of mark on your credit report, one that is unlikely to yield a better rating.

5 – Close, Monitor, and Report

Once an account is paid off, the wisest course for your clients is to close that account. This not only eliminates the temptation to use the account again, but it also keeps the account holder from charging annual or monthly fees on your client’s account.

Make sure they monitor their credit report as they go through debt settlement to ensure that once the account is paid down and closed, it comes off of their credit report. This may require reporting accounts slow to be removed to the credit reporting agencies.

Five Simple Tricks for Getting That Mortgage When You’ve Got Debt

Getting out of debt is very straightforward, if not easy. Impress upon your clients that it’s wise to avoid the temptation to seek an easier way out and be strategic in how and in what order you deal with outstanding balances. In no time at all, your clients will see their credit rating improve.

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How to Get to Approval as Quickly as Possible

1 – Focus on One Bill at a Time

2 – 3 - Start With the Highest Interest Rate or Start With the Lowest Balance

4 – Avoid Costly Debt Consolidation Services and Negotiated Settlements

5 – Close, Monitor, and Report

Five Simple Tricks for Getting That Mortgage When You’ve Got Debt

Start making more
money today!

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How to Get to Approval as Quickly as Possible

1 – Focus on One Bill at a Time

2 – 3 - Start With the Highest Interest Rate or Start With the Lowest Balance

4 – Avoid Costly Debt Consolidation Services and Negotiated Settlements

5 – Close, Monitor, and Report

Five Simple Tricks for Getting That Mortgage When You’ve Got Debt

Start making more money today!

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