Posted on June 3, 2009 at 4:57 am I really want to know, because I know i'm qualified for debt settlement, and I want to take care of my debts. However I am more concerned about it's effects on my credit score and how's it gonna appear on my Report. Any ideas?

Posted on June 3, 2009 at 5:12 am Whether you choose to hire the services of a debt settlement company or do it yourself, choosing the route of settlement will have an effect on your credit report. On a basic level, as long as any form of debt relief doesn't take immediate action in paying off the customer's full amount in the soonest possible time, its effect on his or her credit report would tend to lean on the negative. Truth be told, you really wouldn't be opting to settle if  your credit score were at a better rate, right? Aside from that, your debt would be reported as "settled in full," and not paid in full. If you choose to settle, your credit score may not have an immediate dramatic change

Posted on June 3, 2009 at 5:22 am Going through debt settlement can and will have an effect on your credit score, and in the long run settlement will give your credit greater improvements than if you opted to make minimum payments only. Doing the latter would give an individual a much harder time rebuilding their credit because it'll take him longer to pay off the debt. In hindsight, settlement does not do permanent damage on your credit score.

Posted on June 3, 2009 at 6:27 am Look at it this way: I may have less-than-stellar credit if I decide to settle, but if I file for bankruptcy, that would be even worse. It's like choosing the lesser evil, if you want to put it that way. Bankruptcy will stay on your public records for 20 years and 10 years (for Chapter 7) on your credit report. A delinquent account, regardless of it being settled or not, will remain on your report for 7 years only. Think about it.

Posted on June 3, 2009 at 6:43 am I like your point, caffeinatrix. Just A Phase, here's what I suggest you do: before going ahead with actually settling your debt, do your research on reputable debt settlement companies that have a positive record of settling their customers' indebtedness. Make sure to be on the lookout for organizations that offer lower rates and shorter payment periods. You may have to shell out a higher amount, but at least you'd be able to get your credit back in good shape sooner. Your credit history will be restored, and future creditors will not regard you as a risky consumer because you took the initiative to take care of your debts.There's a form you can fill out on DestroyDebt.com that you can fill out, so you may be matched with a qualified provider, in the event that you're having trouble finding a good company that can help you.

Posted on July 6, 2009 at 4:52 pm Settling a debt will have a negative effect on your payment history (35% of your credit score), seeing that creditors will only settle on past due accounts. If your already behind, though, you need to realize that you are already experiencing this credit impact. On the bright side, settling a debt will improve your debt to income ratio, which will have a positive effect on your amounts owed (30% of your credit score). So really how negative the impact is depends on how far past due you are before settling and how much you owe.

Posted on July 29, 2009 at 5:47 am Can debt settlement hurt your credit?Here's a breakdown of your credit report:-35% of your credit score is determined by your payment history- 30% is by the amount owed-15% by the length of credit history-10% by new credit -and 10% by the types of credit you used The longer you don't pay the more negative its effect is on the payment history segment of your credit score- until your debt is settled. On the other hand, the debt being settled improves, the amount owed segment of your report.

Posted on July 29, 2009 at 5:48 am Bankruptcy, foreclosure, and a judgment would hurt your credit report more than a debt settlement. A debt settlement onlyreflects on your credit report as “paid” or “settled.”

Posted on July 29, 2009 at 6:01 am How would creditors view a debt settlement on consumer's credit report?

Posted on July 29, 2009 at 6:04 am It really depends..but nowadays, having a bad credit is, I suppose, considered as the norm, as the economy is experiencing its worst yet. Normally though the creditors would mark such reports as risky. That doesn't mean though that it would be impossible for you to obtain or be extended a loan/credit in the future. You just have to keep on trying and expect that at first, you'd get a yes from lenders that charge high interests.