Posts Tagged "reduced payments"

Debt management plans and your credit report

Dear Experian,

Companies can negotiate with credit card companies and reduce your interest rate. They close your cards and you pay them a flat amount each month that goes towards your cards. How does this affect your credit?

– YST

Negotiating reduced payments can hurt credit scores

Dear Experian,

I have several credit cards and am struggling to make house payments and credit card payments. If I make arrangements with a credit card company to pay the card off with a reduced amount, will that still affect my credit?

– SPS