How to Settle Debt and Remove from Credit Report

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In today’s financial affairs, debt becomes an almost inevitable event. Especially in large-scale business such as property, vehicle, or credit card bills, debt almost often happens to anyone. However, debt can give a big stain on your financial records? The following lines will explain further on how to settle debt and remove from credit report. Why is a credit report so important that it should be debt-free? It is because the credit report will be used as a recommendation in conducting future loans.

Keep in mind that this debt-note will only appear when you’ve been late for a maximum of 120 days. The agency responsible for recording all your debt history is of course a debt collector. Basically, the debt collector will remind you until the 120-day deadline has been mentioned. After reaching a maximum of 120 days, your debt will be marked with “past due” or “charged”.

How to Deal with Your Debt-Note

Following the old way, the best solution on how to settle debt and remove from credit report is to pay for it. However, what about the debt records that has been made? Before taking care of the existing debt records on your credit report, make sure that you are able to pay off the debt regularly. This is important, considering there are some debt collectors checking your debt repayment history.

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Once you have made sure that your payment is done regularly, the next step is to contact debt collector, as he has the power to remove the “past due” note. If your debt is never transferred to another party, then this step will be very easy. However, if your debt has been repeatedly transferred, you should contact the agency at once that exact person who takes care of your debt first.

As mentioned earlier, sometimes negotiations over the removal of past due notes are slow. Here, you can submit a proposal for additional cost removal to your debt collector. Make sure there are also written agreements to legally back up your statement. Some agencies even deliberately slow down the removal process, so you can provide additional removal costs. Some people consider this as the only way when they don’t know how to settle debt and remove from credit report.

Turn It from Bad to Exquisitely Good

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For professional reasons, you can also convert the past due note into a good debt record. This can only be done after you successfully remove your bad status off from your credit report. The trick is, after successfully removing the past due notes (the result of extra removal payment, of course), immediately submit a statement “fully paid” on your debt collector. It can be through the first and most recent debt collectors.

“Fully paid” or “satisfied in full” indicates that you pay the debt in accordance with specified deadline. Often, this status can increase your credit report of your future lender. In such way, those are the smart steps on how to settle debt and remove from credit report, while adding a good note on it.