Debt Elimination or Credit Score

When dealing with any type of debt settlement plan, one of
the first questions asked is always "Will this affect my credit score?"

In short, yes. Anything that does not constitute paying your creditors the debt you owe in full in the determined time will in most cases negatively affect your credit score.

However a more complete answer to the question is more complicated than the short answer. Remember it is debt elimination that is our goal.

If you are considering a debt settlement plan, most likely you are already making late payments, you are behind on payments or you may be unable to make even the minimum payments. In other words, your credit score is already suffering.

These issues can affect your credit score in just the same way
as joining a debt settlement plan, if not worse. The benefit of the
debt settlement plan is that you are making positive progress
toward eliminating your problem.

So you must prioritize. Which sounds better solving your financial problems, and have your credit score suffer or having your credit score stay the same but watching your debt continue to grow? Again, it is debt elimination that we want to accomplish.

If your goal is to reduce your debt with a debt elimination plan so that you can manage your financial situation better, then you may have to come to realize your credit score may suffer until you accomplish your debt elimination goal.

Let’s say that after say three to six months you become debt free and your credit score has suffered, you will then have the financial independence to once again rebuilding your credit score. This can be done in six months to a year in an average case.

So right now don’t worry about your credit score and focus on your ultimate goal of becoming debt free. Let’s get out of debt first by using a proven plan of debt elimination.

One of the easiest ways to do so is to take a look at this plan on debt elimination.