LDS: Answers to Questions

What is a Tidy Debt Settlement and can I do one in Houston Tx?

Disclaimer: The information below is for educational purposes only and may not be used as legal, business, or financial advice. Consult with your local Houston Texas based financial advisers or attorneys before making any major financial decisions.

If you’ve been following our questions and answers series on debt solutions in Space City, you are familiar with the term “Tidy Debt Settlement”.

You have likely come from our page explaining what an associate debt settlement is and how it can be done in Houston.

On that post we showed you how to procure an associate to settle up your debt with your creditors, and we we lightly touched on the tidy debt settlement process.

So lets dive in a little deeper:


Who coined the term?


The term ‘Tidy Debt Settlement” was coined by the team here at LDS. It was actually invented by our founder Alvin Lee.


What is a Tidy Debt Settlement?


A Tidy Debt Settlement is when you consolidate all your local debts on your credit cards (preferably just one credit card).

The idea is to avoid defaulting with your local Houston community credit unions, community banks, stores, utility companies, gas stations, restaurants, landlords, etc.

You are essentially saving your local people a financial loss and using your big bank credit card to pay them all off.

Once you’ve paid off all your Houston-based creditors, then you approach your credit card company to negotiate a settlement to pay back just pennies on the dollar.

This is an easier and faster way to settle your debt because you only have one creditor to deal with.

It also means that you will only have one creditor pestering you for a payment.

And they won’t be pestering you for long because you will be negotiating with them in “good faith”.


Is a Tidy Debt Settlement legal in Houston Texas?


Yes. If it’s your intention to pay down your credit card balance, and it’s near impossible for credit card companies to prove within a shadow of doubt what your intentions are.

This happens naturally all the time. Houston-based consumers use their credit cards to pay off various smaller debts as way to consolidate all their debt into one place.

However, if you crank up your credit cards by quickly paying off all your other creditors and tell the world you don’t have any intention of paying off your credit card, that would “annoy” the credit card company. Maybe avoid going on your favorite social media platforms talking about your thought process.

If your credit card company gets wind of your intention to never pay off your credit card in full, this could irk them enough slow down the charge-off of your debt.

Just be natural about it. Quietly go about paying off your Houston-based creditors over a reasonable period of time. There’s no need to rush or panic on this – although it’s understandable you want to get this debt all behind you.


What Houston Entity Negotiates the Debt Settlement with the Credit Card Company?


1) a Houston-based debt settlement attorney

2) your Houston-based debt associate

3) a Houston-based debt settlement company

4) yourself


Don’t Wait for your Houston-based creditors to go to collections?


Time is of the essence. Don’t wait so long that your local Houston creditors pass your debt off to collection agencies. 

This complicates things. Collection agencies are far more annoying and can make the entire debt settlement process very uncomfortable.

That’s putting it lightly. There’s nothing tidy about nasty debt collection creeps calling you all hours of the day.

Read our next installment as we try to find who the best debt consolidation company in Houston is.

What is a Tidy Debt Settlement in Houston Texas

If you don’t like the idea of a Tidy Debt Settlement and you want professional help, here is a map with pins for debt settlement professionals based in Houston Texas.

Written by Catherine Dean B.Soc.Sc, M.Math.

Catherine “Cats” Dean is a research analyst and author specializing in finance and financial data analytics. She holds a Bachelor of Social Science degree, and a Masters of Mathematics. You can follower her on Twitter @CatsLovesStats