How would a Debt Settlement Program affect my credit?
Part of our negotiation process is to request that creditors reflect your accounts as having been paid or having been settled, with zero balances. One assessment factor that creditors use in evaluating an individual’s or entities credit-worthiness is their debt-to-income ratio: the amount of debt compared to income. As a Debt Settlement Program reduces your debt, your debt-to-income ratio will improve. Additionally, attempting to resolve a debt through settlement is looked upon more favorably than filing bankruptcy. • How does Debt Settlement compare to Debt Consolidation and Consumer Credit Counseling? Under Debt Settlement we negotiate with your creditors to settle your debt for amounts significantly less than you owe; typically we can settle your debts for 25-50% of your outstanding balances, saving you money on debt principal AND interest, and providing you the opportunity to pay-off your debt faster. Debt Consolidation involves pursuing a NEW loan in an amount sufficient to pay-of
