If you're seeking an alternative to bankruptcy due to excessive debt that you can't pay, you may be considering debt settlement. Settling your debt is when you negotiate with your creditors to lower the amount you owe. [ READ MORE ] Next to bankruptcy, having an account in collections is the worst entry you can have on your credit report. It will lower your score, and make it difficult- if not impossible- to obtain new credit. Creditors realize that if you have an account in collections that it went unpaid for a long period of time, and it makes them fear that if they lent you money they would not receive payments on time, either. [ READ MORE ] MORE DEBT SETTLEMENT ARTICLES