Will Debt Settlement Affect My Credit Score As Bad As Bankruptcy Would?

There are a number of concerns an individual will havebankruptcy lasts on a credit rating for a decade while
when it comes to dealing with debt. In addition todebt settlement only lasts 7 years. It is because
dealing with open debt accounts, concerns will revolvesettlement offers can be targeted towards specific
around the many ways to close out these accounts.debts.
The two most common ways a person will seek toFor example, let's say you owed a great deal of
deal with debts that have spiraled out of control aremoney on three credit cards. One card is maxed out
bankruptcy and debt settlement. In the past, the mainwith a $3,000 balance. You can offer this care a
option people would explore would be filing forsettlement offer of $1500 and if it is accepted, your
personal bankruptcy.credit rating will reflect as such. This is understandable
Today, however, the options for exploring settlementsince you did not pay the full balance you owed.
offers are varied and available. Nonetheless, many willHowever, the other three credit cards would not be
have serious concerns as to whether or not aaffected by the debt settlement offer.
settlement plan will damage a credit rating as bad asWith bankruptcy, ALL of your debts and assets will
bankruptcy. This is a valid concern that deserves acome into play. This comprehensive approach will be
closer inspection.duly noted on your credit rating and the impact will be
The short answer to this question is a resounding no.severe. Additionally, there is no way to fix the impact
Settlement proceedings are far less involved thanof bankruptcy on a credit rating. Settlement marks on
bankruptcy and the impact it will have on your credita credit rating can often be repaired in a number of
will be significantly less. This is not only becauseways when your finances improve.