Does Debt Settlement have a negative impact on my credit?

Which came first, the egg or the chicken?  What is more important a high credit score or a low debt to income ratio?  Having a high credit score means nothing if you also have a high Debt-to-Income ratio.

Debt-to-income ratio (abbreviated DTI) is the percentage of a consumer's monthly gross income that goes toward paying debts.  Having a high credit score means nothing if you have a high Debt-to-Income ratio. 

The impact of enrolling in a debt settlement program and your credit score depends on your current credit rating.  If you have a perfect credit score and can continue to pay your debts then enrolling in a debt settlement program will have a negative impact on your credit score; however, if you're struggling to pay the minimum payments on your debts (High Debt-to-Income ratio) or have fallen behind then you may have already damaged your credit.

It is important to note that having a low Debt-to-Income ratio is just as important as having a high credit score.  Debt settlement focuses on reducing your Debt-to-Income ratio by paying off your debts thru settlements.  Having a low Debt-to-Income ratio is just as important as a high credit score. 

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5 STAR BUSINESS


CountryWide Debt Relief

Toll Free: (800) 594-3362
Fax: (877) 945-3637
 
Office Visits By Appointment Only

Corporate Address:


1504 Brookhollow Dr.
Suite # 117
Santa Ana, CA 92705

Branch Offices:


603 S. Valencia Ave.
Suite 115
Brea, CA 92823

14416 Hamlin St.
Suite 200
Van Nuys, CA 91401
(Neighborhood South Valley)

6000 Sepulveda Blvd.
Culver City, CA 90230



 


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DISCLAIMER:  Debt settlement programs (hereafter “program(s)”) are not an offer and/or promise to lend money and neither they nor CountryWide Debt Relief, LLC (hereafter “CountryWide”) assume or pay any consumer debts or make monthly payments and CountryWide is not affiliated with any of the lending institutions (banks) cited.  Debt negotiation and/or settlement only apply to debts enrolled in a program with CountryWide.  While CountryWide will work aggressively to negotiate and/or settle all debts enrolled in our programs, not all debts can be negotiated and/or settled and not all creditors negotiate and/or settle.  Any figures given are examples based on historical results of actual client settlements, however, individual results may vary and are based on but not limited to the ability of client(s) to save funds and successfully complete their program terms and conditions, the amount and type of debts and creditors enrolled in program, history of accounts enrolled in program and financial standing of client(s).  Any use of the phrase “debt free” or reference to “eliminate” or “reduce” debt only refers to client(s) that have successfully enrolled and completed their program resulting in all program debts being settled for less than the original balance enrolled.  Any figures given or statements made are examples of past performances and are not intended to guarantee future results and CountryWide does not guarantee that debts successfully enrolled in a program will be settled, lowered by a specific amount or percentage, settled in a specific time period or that client(s) will be “debt free” in a specific time period.  However, CountryWide does guarantee to client(s) that if CountryWide is unable to settle any program debt for 80% or less of the balance at the time of enrollment then CountryWide shall not charge client(s) any fee for its services on that respective debt only.  Program fees are not reflected in savings amounts.  All program terms and conditions are subject to change without notice and not all applicants are approved.  Programs are not available in all states and other restrictions apply.  Read and understand all program terms and conditions prior to enrollment.  CountryWide is not a law firm and does not provide any legal, bankruptcy, tax or accounting advice or credit repair services and anyone considering bankruptcy should consult a bankruptcy attorney.  Please contact a tax professional to discuss potential tax consequences of a debt settlement program.  Program may negatively impact client(s)’ credit scores.  Neither CountryWide nor debt settlement programs have been approved or endorsed by any government agency and CountryWide is not an agency of any government nor should this offer be construed as such.  Testimonials made by clients of CountryWide are real and verifiable but photographs used are not actual clients and only partial name and addresses are disclosed to protect the identity of our clients.