Discover which debt relief companies will provide you with honest and professional debt solutions. Here you can research all your options, ask questions, and decide which type of debt solution is right for you!how will debt relief programs affect my credit
It really depends on the type of debt relief program you select…
Debt Management - Has the least affect on your credit score. Typically takes the longest to get out of debt (of the 3 options listed here) but typically results in only a notification on your credit report that you are in a program.
Debt Settlement - This does damage your credit as you will go many months without paying any of your unsecured creditors a dime. Instead you make monthly payments into an account until the money builds up enough to be able to allow your debt settlement company to start the debt reduction negotiations.
Bankruptcy - Also severely damages your credit because unlike in debt settlement where you at least pay back a portion of what you owe, a bankruptcy often means you pay back nothing. However, bankruptcies have become much more difficult to file and get court approval.
I hope that helps.
