10 WAYS TO RE-BUILDING YOUR CREDIT SCORE AFTER LOAN SETTLEMENT
Loan settlement is an agreement between the borrower and the lender where the borrower repays a portion of the debt to the lender which is usually less than the outstanding amount as a final settlement.
Usually, during times of financial hardships such as medical emergencies, job loss, or some other unforeseen events, the borrower is not in the capacity to repay the loan, and depending on the genuineness of the reason the lender can forgive some amount of debt. When the lender pays the agreed amount, the loan is marked as “settled”.
Loan settlement can help the borrower to reach financial steadiness. By doing loan settlement, the borrower can eliminate a financial obligation which will help him to reallocate his funds to other important aspects like savings, emergency funds, investment, etc.
