Wondering what your debt settlement credit score should be if you plan to apply for settlement? How will a debt settlement affect your credit score? Is it the way to go? These may be questions running through your mind as you gauge your options regarding fulfilling your dreams of being debt free.
Applying for a debt settlement will negatively impact your credit score. This is especially true if you have an enormous debt you will settle, the condition of your credit, how much you have paid versus the remaining balance of your debts, and a host of other conditions.
Admittedly, debt settlement credit score issues can negatively impact your financial standing. Still, it is one of the better options to take if you want to eliminate your current financial hardship.
Financial experts suggest two of the best steps to settle your debts – the “avalanche technique” or the “snowball effect.”
Both approaches are promising but depend on how much money you can spare to repay your debts. The most important thing to consider is to pay more than the minimum payment required regardless of your fear about the debt settlement credit score.