Debt Repayment Won’t Hurt Your Account Much If Your Payments Are Already Late

Paying off debt isn’t always a good idea , but whether you like it or not, it is an option that exists in the lending industry. In general, paying off a debt lowers your score, but this is not always the case, especially if the debt in question is already past due.

A friend of mine paid off his debt a couple of years ago and recently told me that he was surprised to find that his account never went down. I was also confused because I read that debt settlement looks really really bad on a credit report. Further research has shown that if your debt is already overdue, debt settlement will not make your bottom line much worse. Credit expert Todd Ossenforth put it this way:

When you pay off less than what is owed, your credit history will be severely damaged. If you are already more than 90 days late paying on your credit cards – and I hope you are not – then going down the debt settlement path probably won’t result in a significant deterioration in your credit rating.

This decision is still not easy, but when you are considering settling a debt it is worth looking into as most people who think it is probably are late with this debt from the very beginning. For more information, go to the full post on

How Debt Repayment Works, How It Affects Credit Ratings |


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