Can I still get a debt agreement if I have bad credit?
A debt agreement is a method that many individuals use to successfully get out of debt. Although bad credit marks may appear on the credit report, being able to resolve the debt can allow a person to start working on fixing those areas of their credit report that needs work.
However, some individuals feel that they cannot enter into a debt agreement because they have bad credit. The truth is that anyone who owes unsecured debt, regardless of credit rating, can enter into a debt agreement although it may not necessarily be a good move. By the time an individual enters into this agreement they have already defaulted on the account and received negative marks on their credit report. The idea behind entering into the agreement is to avoid further negative marks and to simply resolve the debt in the quickest, most affordable way.
Fortunately, the only things that are required with a debt agreement are that your income doesn’t exceed $61,875.45 and that your debt doesn’t exceed $82,500.60. You have to be insolvent, which means you are unable to pay back your debts with your income. You also cannot have a bankruptcy on your credit report within the last 10 years. This is the only credit factor that will influence whether or not you can get a debt agreement. If there is no bankruptcy, then you should have no problem.
From there, the one thing that you need to be concerned with is that a majority of your creditors accept the debt agreement. It is very important that they do in order for the agreement to work for you. For those who do not agree, you can work something out with them that can lessen the burden, or you can take the money you have saved through your debt agreement and use it to pay back those other debts.
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