credit score effects

Both will have a negative affect on your score because neither are paying as agreed.

Agree. Either way you will substantially hurt your credit score. Once all negative activity is complete, you will start to improve it.

Ooogy,

Debt management has a negligible impact on your credit score, but has a major impact on whether you will be granted new credit. Your score may drop slightly due to closed accounts in a DMP but will not drop from missed payments (unless you have or do miss payments).

Debt Settlement will cause your score to drop significantly due to having missed payments in order to get to the settlement.
Your score recovers rather quickly after the settlements are funded and your creditor updates the CRA's that there is zero balance owed.

How quickly the score bounces back will depend on several factors that are unique to each of us.


Mileage may vary