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Affects you negatively.

Depends on how your scores are right now.

As you are concerned about them, I guess they are on the higher side.

Simple logic,

If you do not pay your creditors, they report to bureaus, so you gain negatives and your scores go down.

If you have not been paying since a long time, then you already have lots and lots of negatives, would not hurt you much.

Please feel free to ask me more questions on my message board.

Thanks

This is not legal advice :)

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16y ago

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What is the difference between debt settlement vs bankruptcy?

There is a subtle difference between debt settlement and bankruptcy. Debt settlement allows a person to pay off some of their debt with their creditors. Bankruptcy claims do not result in payment of the debt. Either practice creates bad credit scores for the consumer.


Will a credit counseler help you get a debt settlement on your credit card?

A credit counselor may be able to help you get a debt settlement on your credit card. It will depend on if the counselor only gives you ways to get out of debt or if they are a settlement counselor.


Is settlement good or bad on credit report?

Debt settlement is good for your credit rating. Just settle the debt and move on. Do not use a debt settlement company, ever.


Is debt settlement bad on your credit report?

Debt settlement will have some bad effect on your credit. When a debt is settled for less than its full value, the creditor will note that on your credit report. The damage is much less than you'd experience with bankruptcy or default, and in most cases your credit will improve within a couple of years.


Does consolidating debt have a negative impact on credit scores?

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Related Questions

What is the difference between debt settlement vs bankruptcy?

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What is better debt settlement or consolidation?

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A credit counselor may be able to help you get a debt settlement on your credit card. It will depend on if the counselor only gives you ways to get out of debt or if they are a settlement counselor.


Is settlement good or bad on credit report?

Debt settlement is good for your credit rating. Just settle the debt and move on. Do not use a debt settlement company, ever.


Is debt settlement bad on your credit report?

Debt settlement will have some bad effect on your credit. When a debt is settled for less than its full value, the creditor will note that on your credit report. The damage is much less than you'd experience with bankruptcy or default, and in most cases your credit will improve within a couple of years.


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Should you get enrolled in Debt settlement program to be debt free?

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