Debt settlement lowers the outstanding debt amount by 40-60%. Thus, it becomes much easier to pay off the debt. However, the main drawback in debt settlement is that it lowers your credit score. Before settling the debts, you will have to miss payments, and missing payments hurts your score.
Thus, according to me if possible to negotiate with the creditors, repayment plan is much better than debt settlement.
payment plan
Hi jessicaland,
Welcome to this community :)
Debt settlement lowers the outstanding debt amount by 40-60%. Thus, it becomes much easier to pay off the debt. However, the main drawback in debt settlement is that it lowers your credit score. Before settling the debts, you will have to miss payments, and missing payments hurts your score.
Thus, according to me if possible to negotiate with the creditors, repayment plan is much better than debt settlement.
Thanks,
Aaron
TsUXqxXBXMih
RgCCjZ I truly appreciate this post.