Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Debt Relief » How badly does debt relief (not consolidation) hurt your credit?

How badly does debt relief (not consolidation) hurt your credit?

I’ve heard that debt relief is almost as bad as a bankrupcy- is this true?

RELATED POSTS:

  1. Is there any debt consolidation programs that will not hurt your credit too much? I am looking for a debt consolidation program that would not hurt my credit too much. I have a 24000.00...

  2. Has anyone had a good or bad experience with debt relief companies like credit relief today? Credit Relief Today offering negotiated down debt relief resulting in what they say is at least 50% of your debt...

  3. Where can I find information about the Credit Card Debt Relief part of the US Stimulus Package? I heard the governement has added Credit Card Debt Relief to the Stimulus Package. But everytime I try and look...

  4. Credit Card Debt Settlement & Debt Consolidation Program – Superior Debt Relief Debt Settlement can reduce your credit card debt. With the help of our credit card debt settlement, consolidation &...

  5. Get Relief from Credit Card Debt Today with Freedom Debt Relief Visit www.FreedomDebtRelief.com for more information. About Freedom Debt Relief Our Debt Reduction Program is an innovative solution for consumers...

Written by

Filed under: Debt Relief · Tags: , , , , ,

4 Responses to "How badly does debt relief (not consolidation) hurt your credit?"

  1. PooPooLaTrash says:
    No, it’s not as bad as a bankruptcy, but it will definitely ding your score. After 7 years, you can have debt relief notations removed from your record. Bankruptcy stays for 10 years. Please make sure you are dealing with a reputable company.
  2. CatDad says:
    Please clarify what you mean by “debt relief.”

    STAY AWAY from any “debt relief” program that involves debt settlement. Debt settlement is a risky tactic where you pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.

  3. bdancer222 says:
    If you are talking about credit counseling debt management programs, make sure the company is a NFCC member: http://www.nfcc.org/. These are legit, non-profit credit counseling companies. They offer debt management programs for a nominal fee. They don’t negotiate settlement. They negotiate lower interest rates and payment so you can pay off the debt.

    While in a debt management program, it is noted on your credit report and will affect it just about like chapter 13 bankruptcy. However, upon completion of the program, the notation is removed and you will have decent credit — unlike chapter 13 bankruptcy which will stay for 7 years.

  4. Raj A says:
    Nowadays, the debt relief industry is growing in leaps and bounds. Millions of Americans have debt issues – or are over their heads with credit card debt, which is why they seek out credit card debt relief agencies. These people will help negotiate lower interest rates in exchange for a regular monthly payment. In many cases, you’ll send your money to the credit card debt relief agency and they will disburse it to your creditors. It is not as bad as bankruptcy but it i will reduce you credit score.

Leave a Reply

Connect with Facebook

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Not finding what you're looking for?
Do a custom search of our entire site:

Get Adobe Flash player