Does Debt Settlement Affect Your Credit Score?

If youre buried deep in credit card debt, you probably shouldnt be asking if debt settlement affects your credit score. Instead, you may want to consider if you should really care what your score is. Think about your situation very seriously for a moment. Youre losing sleep and can barely make the minimum payments due on your credit cards. This situation is making you nervous and you cant shake the sick feeling in the pit of your stomach because youre always thinking about the money you owe and how youll be able to pay it back. Should you be worried? Probably, because this is a legitimate concern, and one that has the potential to remain for several years if you continue making minimum payments.

Now, jump over to the other side for a moment. Lets say youve struggled and sacrificed to make your credit card payments each and every month. Because of this, your credit score is relatively high. So what? Is it worth feeling stressed out just to have a good credit rating? If you should enter a debt settlement program and your credit score is lower than youd like it to be for a year or two, would you be awake at night thinking about your credit rating? Its doubtful. If youre like most people youll probably be so relieved to be debt-free, your credit score will be about as significant as your neighbors sisters dogs puppies.

Entering into a debt settlement program may or may not affect your credit score, depending on what your current situation is. Chances are, if youve made some late payments already and/or your credit cards are carrying high balances, your score is probably not as high as you may think it is. Negotiating reduced settlements with your creditors, through debt settlement, however, can save you thousands of dollars, help you avoid bankruptcy and finally get you to the point of being debt-free and stress-free in less than two years very possibly even sooner.

If you should decide that debt settlement is your best option, be sure to hire a company you trust. If the first representative with whom you speak sounds like a salesperson and not really interested in your concerns regarding your current financial situation, theres a good chance youre not going to get the customer service you desire and deserve once you become a client with this particular firm. While going through the process of debt settlement, youll want assurance that your questions and/or concerns will be addressed promptly by the company youve chosen.

In summary, you should probably take a good look at what matters most to you a lifestyle free of debt and concern, or a high credit score. When it comes right down to it, the choice really is yours, so be sure to make the decision youre most comfortable with.

Susan Megge is a consultant in the credit services industry. Over the past several years she has assisted many individuals in resolving their debt-related matters. For more information regarding credit and debt visit http://www.donaldsonwilliams.com384
36248
36155
2908
9437
4589
Blogging-rss
52746
33680
52055
41212
15729
49945
35192
49697
30510
42353
59016
59938
35862
54119
13280
39212
775
34199
31400
17025
432
38273
10660
48983
4346
33839
54529
51250
20300
23741
12834
41040
44148
51932
19893
29268
4023
55204
37884
28603
56121
20571
50938
49357
50815
38691
49330
16523
lung-mesothelioma
56251
24006
44352
10707
8721
47897
47112
27115
30334
14296
7175
29297
54873
31126
4584
55508
49920
32913
21914
43776
15734
59169
45899
2904
36678
3379
26214
9527
57391
43835
35008
40731
38074
57105
44447
21114
11044
2357
52721
35561
22685
27585
57825
41861