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How does debt relief affect your credit?

How does debt relief affect your credit?
With debt settlement, you may need to be several months behind on payments in order to negotiate a settlement agreement

By Manuel Tovar, June 24 – Hispanic Solutions Group

The debt relief has the potential to affect your credit reports and scores Although the actual impact depends on the option you choose and where your credit score started.

With debt settlement, you may need to be several months behind on payments in order to negotiate a settlement agreement. Most of the damage to your credit may have already been done, as late payments can be detrimental to your score.

A debt management plan can have minimal impact on your credit if your creditors continue to report the account as paid as agreed.

Credit counseling may not have any impact on your credit. It could even help increase your credit score if you can reduce debt and make payments on time after you have a payment plan.

Before opting for any type of loan relief plan or Credit cards Please read the fine print first to check for any mention of credit score impacts. It is also useful to monitor your credit reports Y scores regularly to detect any changes in any of them so that you can make your claim.

Bottom line

If you are overwhelmed by debts, then “debt relief” could help you find the light at the end of the tunnel. It can also help avoid the possibility of having to declare bankruptcy. Understanding what you hope to get out of debt relief and how it can help you is critical to choosing the right solution.

Find out if you qualify for debt relief

The questions that users frequently ask are:

We invite you to follow our social networks: LinkendIn, Facebook, Twitter and Instagram to find more information related to finances. Also on our YouTube channel The Credit Channel to learn how to improve your credit. If you need help in repairing your credit, disputing debts that do not belong to you, or other services, call us at (612) 216-1599.