I'll share what I've done. You might agree or disagree, and that is fine. I'm not going to defend it, just present the facts and tell you where it has taken me.
About three years ago, I recognized I was so far in debt with credit cards, a mortgage, and a bank loan that I was never going to be free. The interest was killing me. I had, and still have, a very well paying job. But this debt was killing me.
I reviewed a debt relief agency and called them. The strategy was to immediately stop paying all my debts other than my mortgage. We waited. When my debtors started clamoring, we began to negotiate. We just finished negotiating with the final debtor. Four of the debtors settled for 50% of the debt. One settled for 30%.
In seven months, I will be debt free other than my mortgage. At some point early in the process, all my debtors stopped charging interest. They froze my account. I needed help to do this. Some will say I could have done it on my own. That may be true, but clearly, I am not good with money. The help was welcome, and I have been happy to pay for it.
My credit score is improving little by little. I will clean up what I can. I think this was better for me than bankruptcy. Most of my credit will show up on my credit report as paid in full. I understand that some will show up as an agreed settlement.
So I see this as a realistic place for me. With these debts gone, my income is enabling me to save at an incredible rate. All that money is going into my account rather than up in interest smoke. Do I feel guilty for not paying in full? No, I don't. I gave those companies so much money in interest, they didn't need any more. It was my turn to put my foot down.
When I say I put my foot down, I mean two things. I told my creditors I was finished playing this game. Settle or get nothing. Secondly, I put my foot down on myself. No matter the circumstances, control spending. Say no to credit. Work with cash. I'm doing it now. I haven't needed or tried to borrow since I started this program. I have purchased two used vehicles with cash. I will build my retirement home with cash.
So there's my story. It hasn't been easy. Some may want to criticize the debt relief agency I used, but the process has been seamless. They walked me through every step.
This is one way to raise your credit score.
