Does debt settlement hurt my chances of obtaining new credit?

Debt settlement is a process by which debtors can settle or reduce their outstanding debt by making partial payments to their creditors. Debt settlement can be a viable option for those who are unable to afford their debt repayments, but it can have an effect on your credit score. When you negotiate a debt settlement, your creditor may report the settlement to the credit bureaus which can hurt your credit. By settling your debt, you are agreeing to pay less than the full amount which will be reflected on your credit report and can cause your credit score to drop. Additionally, creditors may also report your account as “settled” or “paid in full for less than the full balance” which is a negative mark on your credit report. In North Dakota, debt settlement is a regulated process with the help of a qualified debt settlement attorney. If you decide to pursue debt settlement, it is important to understand the consequences it may have on your credit. However, it is also important to weigh the pros and cons of pursuing debt settlement. If done properly with the help of a qualified professional, debt settlement may help you resolve your debt while avoiding some of the negative consequences of bankruptcy. Ultimately, debt settlement can hurt your chances of obtaining new credit, but it may be a viable solution for those unable to afford the full amount of their debt. It is important to thoroughly research debt settlement and weigh all of your options before making a decision. A qualified debt settlement attorney in North Dakota can help you decide if this is the right choice for you.

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Does debt settlement hurt my chances of obtaining new credit?

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