Debt Settlement Effect On Credit Score

April 29, 2010 - PRLog -- Many consumers today struggle with debt concerns and financial worries, with the world’s economy still in a state of uncertainty, many struggling with their own personal economy woes are looking at ways of eliminating their own personal debt.  Debt settlement is one option that can provide some assistance and relief in paying off your credit card debt and is a viable alternative to bankruptcy.  

However there are still some costs and consequences one should consider before entering into a debt settlement agreement.

As with any important decision you make, you should do your homework first and have a good understanding, from all angles, before you leap into a debt settlement program.  If you credit score is of concern, you should know that entering into a debt settlement agreement will affect your overall score.  If you are paying minimum payments and paying those payments late, you score will already be affected and it may not be as important to you as someone who has been maintaining their rating by paying more than the minimum payment and making their payments on time.

If you find that you are over your head in credit debt and you really don’t care so much about your credit score, but care more about gaining some relief from all the worry, the debt settlement effect on credit score is probably a factor pretty low on your financial barometer.  Still, it’s important to know that once you enter into a debt settlement agreement, having a debt-settlement company do the legwork for you is filled with risk, and very likely outrageous fees.  Once you complete the program it will probably take a year or two to rebuild your credit.

More and more, debt settlement agreements are increasing in popularity as a means of eliminating burdening credit debt and many are choosing peace-of-mind over credit score.  But it is important to know what you are getting yourself into, before you sign on the dotted-line.  Be certain that your situation is right for debt settlement and arm yourself with as much knowledge as possible.  Information is power and it can go a long way in helping you navigate the tumultuous waters of debt settlement. You can learn more here http://www.economywatch.com/credit-report/debt-settlement...

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