Yes, debt settlement can potentially harm your credit score. When you settle a debt for less than the full amount owed, it typically results in a notation on your credit report indicating that the debt was settled for less than the full balance. This notation can negatively impact your credit score, as it indicates to future lenders that you did not fully repay the debt as originally agreed.

Additionally, during the debt settlement process, you may have missed payments or fallen behind on your debts, which can also lower your credit score. These missed or late payments can remain on your credit report for several years, further impacting your creditworthiness.

However, it’s essential to weigh the potential negative impact on your credit score against the benefits of debt settlement, such as reducing your overall debt burden and achieving financial relief. In some cases, the long-term benefits of debt settlement may outweigh the temporary negative effects on your credit score. Additionally, with responsible financial management and timely payments on your remaining debts, you can work towards rebuilding your credit over time.

Our fees are usually between 15% – 25% of the total debt enrolled in the program. But your rate might change based on where you live and how much debt you have.

In our program, you don’t have to pay us anything until we’ve successfully sorted out a deal with your creditors and you’ve made the first payment. You get to decide when we charge you because you have to approve each deal. Once we’ve made a deal with one of your creditors, we’ll ask for your okay. Then, after you’ve given the thumbs up and we’ve paid the creditor, we’ll charge you the fee for that particular debt. The total fee for the program is included in the monthly savings we talk about with you.

Usually, it takes about 2-4 years with our program. On the other hand, if you only make minimum payments on your credit cards, you could stay in debt for 10-20 years and end up paying back much more than what you originally borrowed.

Debt Relief involves negotiating with creditors to settle debts for less than the full amount owed, while bankruptcy is a legal process that may result in the discharge or repayment of debts under court supervision.

No, these are 2 completely different debt management strategies.

1. Debt consolidation involves combining multiple debts, such as credit card balances, into a single loan or line of credit with a lower interest rate. This new loan is used to pay off the existing debts, simplifying your repayment process by having only one monthly payment to manage. Debt consolidation does not reduce the total amount of debt owed but may make it more manageable by lowering the interest rate or extending the repayment term. You will need to QUALIFY for this loan and will likely need a high credit score to get a low interest rate that will better your situation.
2. Debt settlement, on the other hand, involves negotiating with creditors to settle debts for less than the full amount owed. In a debt settlement program, you typically stop making payments to your creditors and instead make regular payments into a dedicated account managed by a debt relief company. These funds are then used to negotiate settlements with creditors. Debt settlement aims to reduce the total amount of debt owed by negotiating with creditors to accept a lower lump-sum payment as satisfaction of the debt.