Making an informed decision regarding your finances and outstanding debt means understanding the full implications of your debt solution plan. Like many people, you might be wondering, “Will a debt settlement affect my credit”. For instance, you know the toll a bankruptcy can have on your credit rating with your credit report, but few people understand that a debt settlement notation can be just as damaging to their credit standing. The reality is it can stain your credit report for up to a decade. Clearly, a debt settlement approach should be considered by only those who already suffer from a poor credit score.
Will a Debt Settlement Affect my Credit?
If you are wondering whether a debt settlement agreement will have a negative effect on your credit standing, the answer is yes. Not surprisingly, creditors like to get all of their money, so while they might be willing to take a settlement amount, they won’t be happy about that prospect. Consider the following:
- Debt settlement stays on a credit report for 10-years
- The notation will read, “Paid less than total amount owed.”
- Best utilized only when the savings are substantial
- Viable option for debtors who already have poor credit
Debt Settlement and You
If you are thinking about debt settlement, you should reach out to the experts at Americor Financial to discuss the full range of options available to you when it comes to devising a debt solution that will work for your individual situation. Here at Americor Financial, we are experienced with an array of debt reduction strategies that are designed to help you escape the tight grip of consumer debt. Let’s find out if a debt settlement plan is the right solution for your debt problem.