If you are in deeply in debt, you have probably looked into debt settlement as an option and now you are wondering if doing it will do even more damage to your credit.
You are probably already struggling to make the minimum payments or you are already past due on your accounts.
There will be a temporary impact on your FICO score but the damage done to your credit report is worth it and only lasts for a short time.
This is not anywhere near as serious as filing bankruptcy would be.
In fact, your score will go up over the time you are actually in debt settlement.
As you pay off more and more accounts and they show zero balances which they will because the accounts are paid in full one at a time, the credit report will improve.
On average, many people have their scores go back up to as high as 700 in a matter of less than nine months of completing the financial obligation to the companies.
Maybe you are thinking you could try debt management or credit counseling as an alternative.
You can but a notation will go on your credit report that stays there for seven years.
Not so with the debt negotiation method.
Many positive things come from debt negation with the right company helping you.
It is a quick way to get to be debt free and the best part is that the accounts are reported as paid in full.
This has much less of a impact on your credit report than a bankruptcy, debt consolidation or charge off would.
Yes, your score will go down during the period your accumulating you money to pay off each debt because they become overdue but that soon changes.