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YES. Your credit score will decline due to entering this program. How much it will decline depends on the amount your debt is reduced by. Most of the debts you place into negotiation will most likely be “charged off”, which will reflect negatively on your credit score. However, once this charged off debt is settled, the settlement is reported to the credit bureaus. Settled accounts are positive compared to unresolved delinquent debts or bankruptcy. After all, the debts have been settled and paid.
Debt settlement is evidence that you, as a debtor, are making an honest attempt to pay your debt obligations to the best of your ability. Your credit score should begin to improve since eventually, your debt will show as being resolved, or paid. A high credit score is desirable to have, but if you are experiencing financial hardship and are unable to pay your debts, then your first priority should be to settle your debts to the best of your ability. With a fresh start, you will be able to adopt a debt free lifestyle.
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