How will a debt restructuring program affect my credit?
If you have only been making sporadic payments, making reduced but consistent payments on a debt that has been decreased or deferred through a Debt Management Program will often have a positive effect on a credit report. Since debt restructuring increases your available cash flow while reducing total debt, your improved capacity to repay debt will enhance your ability to obtain credit. If you already have a perfect credit score, reduced payments may temporarily reduce your score. However, in some cases TMC can even get creditors to re-age your account, meaning they will report you current again. Then by facilitating consistent, monthly payments, the DMP will help you reestablish a favorable credit history. Delinquent debts have a derogatory impact on your credit report and may even prohibit you from obtaining critical vendor credit lines or new financing. If you have older business related debts, call us for help today. We can reduce and/or restructure them, and clearing them off your
