Hello, I'm Scott... My research can help you find honest & reputable debt relief companies. I've met with the companies I suggest to ensure they provide REAL solutions.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.
