Does debt relief affect your credit score?

Most people shy away from seeking professional debt relief because they believe that this will affect their credit score. What they fail to understand is that their credit score is already in a bad state since the need to seek debt relief options has arisen.

People who pay their EMIs on time rarely have to worry about their credit score. It only becomes a matter of concern for those who are not able to make timely repayment and will also require more credit in the future. This can be one of the toughest situations to be in. You are affected in the present, and your future looks dark too.

But there is more to it. The future is not as bleak as we imagine it to be. It might seem impossible, but you can always rebuild your credit score over a period of time, even after seeking debt relief. Many people are not aware of it. Also, many people don’t share this fact either. So why are we sharing it with you?

It is because, as financial service providers, it is our duty to let our clients know about the possibilities that exist. It is interesting to note that irrespective of whether you opt for debt relief through debt settlement or debt consolidation, it will have a minimal impact on your current credit score. If you are looking for debt settlement, you may already be late by a few months, and the damage to your credit score has already occurred. Or if you are looking for debt consolidation; it may have a minimal impact on your credit score because you will be making timely repayments.

You might not know it, but your credit score can actually be rebuilt over a period of time after you have paid your debts. In fact, your credit score might also rise while you manage your debt repayment in a timely manner with professional help. Ideally, anyone who is unable to manage their debt should prioritize debt repayment over their credit score. Your credit score is of no use if you are unable to successfully repay your debt. At the end of the day, for any creditor, repayment is more important than anything else. Thus, try to settle or repay your debt as soon as you realize that things are getting out of control.

For any further clarification, you can get in touch with our debt experts, who are fully trained and equipped to guide you, even with your exceptional concerns and circumstances. Everything can be worked on if you have the true intention to change. What do you want to do?