HELP!!!! Can you tell me the impact

Your score will drop, no doubt. Also, you will have to file a 1099 for any and all write offs, (the debt that is forgiven, subject to it being $600 or more) with the IRS.

That being said, it's better than a bk on your record. The creditor will state (paid as settled) on your cr.

Just wanted to give a heads up as to what happened to us. I fell behind on a credit card to B of A and just settled but a couple of months ago my car insurance went up and just found out it was due to my credit score. I am talking around 30 a month on a policy I have had over 20 years and never missed a payment. Also had credit lines with Home Depot and Lowes that had nothing on them that lowered my limits from $2k to $500. So it can also affect you in different ways I didnt realize.

Thank you for the warning. Please let me know more if you have more to share.

I would also like to point out that if you are a good candidate for debt settlement you are NOT likely to be liable for taxes on the forgiven debt. The IRS gives an out for debtors who are ???insolvent??? at the time of debt settlement. Do some research on a form know as 982 which may exempt you from that tax.