How Will Debt Settlement Affect My Credit Score?
August 15, 2023
Debt settlement typically has a negative impact on your credit score.
The exact impact depends on factors like the current condition of your credit, the reporting practices of your creditors, the size of the debts being settled, and whether your other debts are in good standing.
A debt settlement arrangement can be an attractive option to eliminate debt that you cannot pay. However, it will most likely negatively impact your credit report, but it can let you resolve financial strain and start fresh. Here is what you need to know if you are considering a debt settlement:
- Why debt settlement can ding your credit score
- How debt settlements work
- What type of debt should I settle?
- Debt settlement vs. staying current
- How many points will my credit score drop if I settle a debt?
- Is it better to pay off a debt or settle it?
- Can debt settlement be removed from the credit report?
Stout Bowman regularly posts important and interesting information on our blog. Current topics include credit/debit/loans, estate planning, insurance, investing, Medicare, retirement, Social Security and taxes, as well as general information that we think you might find of interest. 
We have been publishing an email newsletter for our clients and friends since 2016. Links to all of the newsletters can be found on our newsletter page, with the most recent listed first. We try to keep our emails short, so there are typically only three articles in each one, most of which link to other articles in the financial and mainstream press. 
We also have a page on our site for the latest news about our company, notice of any upcoming events, and a market commentary to discuss what our advisors and other financial industry experts conclude about the previous investment performance and what we might expect the markets and the economy will do in the coming months. 
Many news organizations offer what is called a Rich Site Summary (RSS) feed, a listing of the latest changes to their site's content. We have subscribed to several of these news feeds and present a list of their latest ten articles on a page on this website to save our clients the hassle of going to multiple websites just to see what is available. Currently, we subscribe to 
At Stout Bowman every investment client is first a financial planning client; it's important to go through that process before we make any professional investment recommendations. Therefore, we strive to make financial planning understandable and comfortable every step of the way. One way to do that is to provide our clients access to financial education resources. To that end, we have subscribed to educational websites to receive their news feeds and present a list of their latest ten articles on a page on this website. Currently, we offer