money sectionmoney sectionLenders of unsecured debt, such as credit card companies, have a vested interest in getting their money back from you. However, they also have limited options compared to secured debt lenders because they have no claim on any of your assets. They risk receiving no reward in court if you have no money to pay them with. One method they may use to collect unsecured debt is debt arbitration. An arbitration requirement may be part of your credit card contract.
While many companies claim an ability to fix your credit scores for a fee, there are also many ways you can improve your credit on your own. If you do not want to pay a company, taking steps like making timely payments and paying down your balances can considerably improve your standing with the three major credit bureaus.
Debt arbitration is a third-party intervention that brings debtors and and creditors together in order to reach a debt settlement. Generally debt arbitrators represent debtors to settle unsecured debt. Debt arbitration can set a debt management or debt settlement plan. Debt arbitration is not the same as credit counseling.
