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I have approx. 45-50k in unsecured debt- I have talked with a several agencies about a debt management vs debt settlement program-I would like to know how both programs will affect my credit report about 12-24 mos. later if all payments are timely-will my credit report reflect that I am in a c.c. program until the program is completed?which program will help you to raise your credit score faster once completed?

Your credit score will typically be damaged more severely with a debt settlement plan than with a debt management plan. During the debt settlement process you stop paying your credit card bills until a negotiated settlement is reached so your credit score obviously suffers and will take time, strict budgeting, and effort to repair. However, most of the time, a debt settlement plan is a quicker solution than debt management so it allows you to begin your credit score rebuilding process sooner.

Yes, with debt management your credit score will reflect the fact that you are in a management program but assuming the debt management company is diligent about paying your creditors on time every month, your credit score will not suffer as much.

So there is a tradeoff, how fast do you want to get out of debt (faster with settlement) vs. how concerned are you about your credit score (less damage with a debt management program)?

That’s the question you need to consider. I hope that’s helpful.