Thread: How does a credit card debt settlement affect your credit?

Debt settlement will likely have a negative effect on your credit. Your credit would benefit more by making on time payments for the full balance than enrolling in a debt settlement program. The marks left on your credit from a debt settlement program will remain your credit for up to seven years and include past due payments, charge offs, accounts being sent to collections, and in some cases, judgments. Unfortunately, this is one of the compromises one must accept in order to settle their balances and realize the savings potential of our program, although the credit impact is generally less than filing bankruptcy.