How does debt management affect credit?
One of the biggest concerns on the minds of people who are thinking about entering a debt management program is that working with a debt management company will negatively affect their credit score. This fear is not entirely unfounded. However, if you find yourself mired in debt and cannot make on-time payments on your bills, the positive effects that debt management can have on your credit outweigh the negative ones. When you are in a debt management program, your credit report will show that you are making payments through a debt management service. Creditors and lenders who see this on your report might be more inclined to view you as high risk when setting interests on your loans or issuing future credit. However, your FICO score is not affected by your use of debt management services. Foregoing debt management, on the other hand, may lead to a continuing pattern of late payments and, eventually, bankruptcy, which will have far worse effects on your credit than seeking out the serv
