Why Debt Settlement

Credit card debt settlement is a legal way to pay your bills that have gone into collections or are going into collections.  Most will turn to a debt settlement company as a last resort.  It is an option to filing for bankruptcy.  A bankruptcy will stay on your credit report for up to 7 years.  A debt settlement program will have no impact on your credit score.  In fact, a debt negotiation will not even appear on your credit report.  Since it is not a court action it is not monitored by the credit score companies.  Just keep in mind that if you are not paying your bills your credit score will probably be bad anyway.  Many consumers report that the debt settlement company ruined their credit.  The reality is that their credit was probably bad before they even started because they have not been paying their bills.

Is Debt Settlement Bad?

Not paying your bills can drop your credit score as much as 200 points in just one month.  Most consumers typically can expect to pay 40-60 cents on the dollar of what they owe when using a debt settlement companies.  Most consumers can finish their debt negotiation program in under 4 years.  This is a huge difference if you are trapped in just paying minimum payments.