7 Things Not to Do During Debt Settlement Blog

7 Things Not to Do During Debt Settlement

When you enroll in our debt settlement program, you start a journey toward a debt-free future. While debt settlement is straightforward there are some opportunities for missteps along the way. Follow these 7 things not to do during debt settlement to keep your program on track. 

  1. Don’t Close Cards with a Zero Balance
  2. Don’t Apply For New Credit Cards
  3. Don’t Answer Calls from Unknown Numbers
  4. Don’t Ignore Your Client Dashboard
  5. Don’t Stress Over Your Creditworthiness
  6. Don’t Skip Monthly Deposits
  7. Don’t Withdraw From the Program Early

1. Don’t Close Cards with a Zero Balance

These accounts can help your creditworthiness. They improve your average account age, debt-to-income ratio, and credit mix. When you are ready to start building your credit, you’ll have a card on hand to make monthly purchases you can pay down right away. 

2. Don’t Apply For New Credit Cards

Taking on new credit card debt could disrupt your program. It can add stress to your budget and make it harder to afford your monthly debt settlement payments. 

Be very cautious about taking on new types of debt unless it’s for something essential. After you have paid off your settlements, it will be easier to manage new debt responsibly.

3. Don’t Answer Calls from Unknown Numbers

Creditors may call you often during the early days of debt settlement. These calls are disruptive and may be redundant since our Client Success Team will be handling all necessary communications with your creditors.

To keep disruptive calls to a minimum, you can block unknown numbers. You can also redirect creditor calls to our team by replacing contact information from your enrolled accounts with ours.

4. Don’t Ignore Your Client Dashboard

The Client Dashboard is a useful tool that helps you monitor your progress and answer important questions. While you don’t need to log in daily, try to check in once a week or a few times a month during your program.

The dashboard includes videos, FAQs, and a summary of your dedicated account payments and upcoming settlements. You can see how much you are saving and review important alerts or information requests from our team.

Our most successful clients regularly log in to the client dashboard to monitor their progress. You can access the dashboard on your computer or mobile device by downloading our app in Google Play or the Apple App Store.

5. Don’t Stress Over Your Creditworthiness

Many people worry about their creditworthiness during debt settlement. It is normal for your credit score to fluctuate during the settlement process. Try not to stress over it too much, especially if you are early in the program. Remember, you don’t have a credit score problem, you have a debt problem and that is exactly what debt settlement alleviates.

Scores typically see improvements after settled debts are paid and will improve naturally with good habits once debt settlement is successfully completed.

6. Don’t Skip Monthly Deposits

Your monthly program deposit is the fuel that builds your dedicated account and drives your debt settlement program. It’s important to be consistent with your deposits so that our team can fund current settlements and plan your upcoming settlement agreements.

Changes to your deposit amount can put current settlements in jeopardy. If your financial situation changes, be sure to communicate with our team as soon as possible. If you need to adjust your monthly deposit amount we can help you understand how it will affect your program. 

7. Don’t Withdraw From the Program Early

Debt settlement programs usually take 12 to 48 months to complete. While this is a relatively short amount of time in the big picture, it’s normal to feel impatient and to want your program to be done as soon as possible. It’s important to stick with the program because every monthly deposit brings you closer to your goal of moving beyond debt.

Withdrawing from the program early can have negative effects on your debt. Keep in mind, completing the program is your best chance to resolve your debt for less than you owe.

Use Program Resources to Stay Informed 

At Beyond Finance we help our clients kick off their programs on the right foot by providing free resources and updates about what to do and not to do during debt settlement. The Welcome Kit you receive when you enroll is filled with vital information about how the program works and what you can expect during different phases. It also has several “to-dos” that will help you get started. 

Be sure to follow the instructions in the guide and know that our team is here to help you whenever you have questions or concerns.

Not Yet Enrolled?

Get your debt resolution journey started by contacting us for a free quote. We can help you find the debt relief solution that is best for you and your debt. There is no credit impact to apply.