Posted on August 12, 2009 at 4:24 am I got the part that I have to be past due first for the settlement company to accept me-also that my debt is over $10,000..I'm just not clear on debt settlement's impact on my credit..can debt settlement hurt my credit?

Posted on August 12, 2009 at 4:29 am Can debt settlement hurt your credit? The longer you don't pay the more negative its effect is-- on the Payment History segment of your credit score-  After debt settlement has cleared your debt, however, the Amount Owed segment of your report improves.

Posted on August 12, 2009 at 4:33 am Can debt settlement hurt your credit?Here's a breakdown of your credit report. See which segments are affected by debt settlement (account past due, has stopped paying the creditors and will continue to do so until enough amount has been saved..): -35% Payment History- 30% Amount Owed-15% Length of Credit History-10% New Credit -10% Types of Credit Used

Posted on August 12, 2009 at 4:42 am Why worry though if debt settlement can hurt your credit, at this point. Isn't it more important to get rid of your debts first, then worry about its repercussion on your credit later? Your credit can be repaired...much faster than if you've filed bankruptcy.

Posted on August 12, 2009 at 5:03 am Bankruptcy is the worst that a consumer can have in the credit report and if it's a Chapter 13 bankruptcy -- it would last for 3-5 years, which gives the consumer lesser time to repair his/her credit. Unlike with debt settlement, if it's not complicated, the program lasts for 12 months or depending on the case it can last for 36 months--

Posted on August 12, 2009 at 5:05 am A debt settlement appears on the credit report as either "paid" or "settled." Can debt settlement hurt your credit? Yes, but not as much as having bankruptcy on your report for 7 or 10 years, and 10 years on your public records.

Posted on August 12, 2009 at 6:41 am Can debt settlement hurt your credit? Yes it can. Why? It is due to the fact that you are reported as past due until the account is resolved. As a result, this has a negative impact on your payment history (35% of your FICO score). But for most people trying to avoid filing bankruptcy this is a very small price to pay. And I am seeing a lot of this on the forum, about settlements being reported as "paid." That is misleading. In fact, lenders will usually only report that an account has been paid if it was satisfied in full. If you settle a debt, you can expect that it will appear on your credit report as "settled", "settled for less than the full balance", or "settled in full."