Does debt relief law impact my credit score?

Yes, debt relief law can impact your credit score. Although debt relief law is designed to help people who have difficulty with high levels of debt, the law does not erase debt completely and will still appear on your credit report. When you take advantage of debt relief law, it will usually show as either a "debt settlement" or "debt consolidation" on your credit report. A debt settlement means that you have reached an agreement with your creditors to pay off a portion of what you owe, while a debt consolidation allows you to roll multiple debts into one single payment. Although both of these can help bring your overdue payments current, they will still be reported to the credit bureaus, and may leave a negative mark on your credit score. Additionally, debt relief law can affect the amount of time your debt remains on your credit report, which can impact your credit score as well. While most negative items remain on your credit report for seven years, debt relief law will often reduce that amount to two or three years. This can give your credit score a boost by reducing the total amount of negative items that remain on your report. In conclusion, debt relief law can definitely impact your credit score. Whether the impact is positive or negative will depend on the details of your particular situation. Anyone considering taking advantage of debt relief law should consult with a financial advisor to get the best advice for their individual circumstances.

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