When You Eliminate Debt With a Debt Settlement Company Does it Hurt Your Credit Score?

When you eliminate debt with a debt settlement company it does effect and lower your credit score however it is nowhere near as bad as bankruptcy. A debt settlement is a way for consumers to avoid bankruptcy and eliminate debt up to 70% with only mildly affecting your credit score. Most consumers are more than willing to make this trade off and debt settlements are becoming more popular than ever due to the massive amount of people currently in debt. This article will educate consumers on the debt settlement industry and teach them where to find the most favorable deals. credit repair

You can eliminate debt up to 70% in some cases with the help of a debt settlement company although results vary considerably considering which company you end up choosing. A legitimate and established company will be able to eliminate 50% of your debt on average. Think about that. You can trade 50% of your debt being eliminated for a little drop in your credit score. Pretty good trade in my opinion. These conditions have not always been this favorable but do the massive financial bailouts and an overall sense of fear shared by many creditors, there has never been a better time to eliminate debt.

Consumers who need debt help should realize that the debt repair industry is a very saturated market and just like any other market there are companies that will not live up to their promises. Due to the profitable nature of the industry there are new players entering the market everyday many of whom are inexperienced in debt negotiation. Consumers need to know how to differentiate between the established companies and the rookies. This may seem challenging from a first glance seeing as how a new debt settlement company will often outspend an established company in marketing and appear to be legitimate.

If you want to get out of debt and hire a debt settlement company for debt negotiation on your behalf then I have an important piece of advice. Do Not go directly to a particular debt settlement company but rather first go to a debt relief network that is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt companies and increasing your chances of eliminating your debt. FreeDebtSettlementAdvice.com is one of the largest and most respected debt relief networks on the marketplace today. credit repair