To answer your question, “How will debt settlement affect my credit score?” your credit score will be affected because your creditors need to be in a delinquent status before they will accept payment as full and final settlement. Based on what creditors you have, we quote our clients on an industry standard savings of 50%. This amount is deducted from the total amount of debt enrolled into our program. As we settle each one of your accounts, per federal law, the creditor is required to update your credit bureaus within 90 days of the final payment clearing, as paid/settled in full. Depending on whom you owe, and the state you live in, our program lengths run form 12-48 months. Once all of your creditors have been settled and updated to the credit bureaus, we can refer you to a third party credit enhancement company for assistance in rebuilding your credit and increasing your credit score.
