But creditors typically won’t settle debts with consumers who make their payments on time, so it’s a better option for those that already have several late payments on their credit report.
Brad Stroh, co-CEO of Freedom Debt Relief, adds, “Debt settlement hurts people’s credit scores but helps their credit profiles.
Is Freedom Debt Relief a good idea?
Freedom Debt Relief has several great advantages to its debt settlement services including: Minimum of $7,500 in debt to begin debt settlement. Costs between 15 and 25 percent of the total unsecured debt. One representative to work with.
Will National Debt Relief hurt my credit?
The truth: Debt settlement can hurt your credit score almost as much as bankruptcy. Although asking for a settlement on your own won’t hurt your credit score, succeeding in getting a settlement – or skipping payments as some settlement companies advise – definitely will.
Can you get out of Freedom Debt Relief?
Canceling the debt negotiation process can be difficult, since Freedom Debt Relief may be in the midst of working with your creditors to pay off your debt. If you would like to cancel, please call the Client toll-free number at 1-800-655-6303 to determine the best option for ending your service.
How does debt settlement affect your credit?
While a “Settled” status is slightly better than an “Unpaid” status, any payment status other than “Paid as agreed” or Paid in full” can damage your credit. Because you aren’t paying your full balance as agreed, debt settlement will have a negative impact on your credit score.