credit score

well it will take a hit for sure because whether you hire a company,or do it yourself.alot of creditors won't even discuss settlement until you are behind.usually about 90-120 days late is when the process starts.if you are concerned with your credit a DMP(debt management program)might be the way to go.do your research as there are scams in every phase of debt reilef.

Hi Kooinga with regards to your decision of considering debt settlement would be correct as it would save you a lot of time and money and help you get out of the pressure of being in debts however it does take a toll on your credit score as your accounts remain delinquent till your creditors do not come up with good settlement offers and those offers are accepted and paid off in a lump sum or a payment plan (depends on the negotiations). If You are considering debt management it will have a neutral effect on your credit scores or may go a little negative however your are set under a payment plan and the rates off interest are slashed down (only if it is higher than 15%) all your bills are consolidated under a single payment each month and depending on the negotiations with the creditors a payment plan i chalked out for you.As per my opinion debt settlement is best if you are having difficulties in coping up with your bills if the problem is just with the interest rates than debt management would work well.

Hi, if you are going for a settlement program, your credit score point will be affected somewhere around between 150 to 200 points. But initially you have to know how to rebuild your credit score. When you are consolidating your debts with any debt settlement company then your accounts are getting delinquent because you are not paying any money to your creditors. However I am sure you have monthly payments to make each month.
For ex- Mortgage bills,car payments,monthly utility bills and etc.
Be current on those payments because those things will help you improve your credit score.And moreover on one side when you are falling behind on your monthly payments for your debts which you are looking to pay off and on the other hand when you are current on your monthly utility bills. That will have a neutral effect on your credit score.