Does debt relief law negatively affect my credit score?

Debt relief law in North Carolina is designed to help those who are struggling with debt by either reducing the amount owed or allowing them to make more manageable payments. Although debt relief law can be beneficial in many ways, you may be wondering if it will negatively affect your credit score. The answer to this question is, it depends. If you are able to pay off your debt in full as part of a debt relief program, your credit score will remain the same. However, if you make a settlement to your creditor where you pay off a portion of what you owe, your credit score will likely take a hit. This is because the creditor reports the debt as “settled” instead of “paid in full”. Additionally, the amount of your credit score affected depends on how much of the original debt you pay and how long the debt has been unpaid. In general, the longer the debt is unpaid, the bigger the impact will be on your credit score. Overall, debt relief law can be a great way to get your finances back on track and reduce the amount of debt you owe. However, it is important to realize that it may have a negative effect on your credit score. That being said, if you are unable to repay your debt with traditional methods, debt relief law can be a valuable option.

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Does debt relief law negatively affect my credit score?

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