Is it better to settle debt or pay in full?
Paying off debts in full is always better. It helps to raise credit score. Opting for settlement can help someone to get rid of debts fast but it can reduce credit score. However, when one can't make the full payments, he/she can negotiate with the creditors and opt for settlement, and then budget well and manage finances better to raise score.
I agree with Good Nelly. Don’t worry if you’ve opted for debt settlement. Initially, your credit score will go down. But, with time it’ll get a boost only if you avoid doing those things that might hurt your credit score.