credit counseling or settlement? which one will impact most on my credit report and score?
2007-03-04 05:43:45 · 3 answers · asked by Anonymous in Business & Finance ➔ Credit
Credit counseling is usally less damaging becaus it demonstrates a good faith effort to resolve the debt in full. Settlement can be tricky because it will not be reported as paid in full and can actually remain on your report as an unresolved debt. If you choose settlement you should always get in writing from the creditor that the payment settles it in full.
2007-03-04 06:34:14 · answer #1 · answered by douglas l 5 · 0⤊ 0⤋
Counseling is better and doesn't look as bad on your credit report, but neither option is good. You really want to stop using your credit cards and pay them off in full. Some of the big finance advisors have articles on this (i.e., Suze Orman) and how to pay off the cards with what you earn. You can also call the credit card companies and ask for a lower interest rate - frequently they will grant you one if you have an account in good standing - and that will lower the amount of money you ultimately pay back.
2007-03-04 08:39:50 · answer #2 · answered by Linda J 2 · 0⤊ 0⤋
settlement is worse on your credit, but that does not mean that you will have marks against you for credit counciling.
2007-03-04 05:57:22 · answer #3 · answered by iowagalusa 1 · 0⤊ 0⤋