One of the most common questions we get is how debt settlement will impact a credit score. Normally, by the time a client reaches the point of calling for debt settlement help, their credit has already been or is about to be impacted.
If you are current on all of your payments, debt settlement will negatively affect your credit score. With that said, if you can afford to pay off your debt in full on your own, you should do so. There are non hardship programs available that can help you get your spending under control. It is important to note that even if you are current with your payments but your credit cards are maxed out, your credit score profile can be negatively impacted. If you are struggling, are already behind in your credit card payments or feel you may be in the near future, your first goal should be to get out of debt then rebuild your credit profile. As you move through the debt settlement program, each time a debt is settled, the creditor is required to report a 0 balance owing on the credit report. Every credit situation is unique. We cannot predict or make any promises regarding your individual credit outcome after debt negotiation. Please visit the following links for more information: |
