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Doesn’t it reflect on your credit score even if you are able to negotiate with the creditors yourself?

The reasonj why your credit score is adversely affected in the debt settlement process is because there is a delay in paying your creditors so your accounts go into default. The reason is that the settlement company asks you to make monthly payments into an account that accumulates until their is enough money to make a reasonable offer to your creditors. As soon as a settlement is reached your creditors will want the full settled amount immediately.

You can try and negotiate on your own but in order for it to not affect your credit score, you’d have to have the money now to pay off the settled amount. Typically people don’t have the money so they use the settlement company process to help them accumulate what they need over time.

Furthermore, your creditors will typically not negotiate on accounts unless they are in default. Why would they take less money then they are owed on an account that is current? Therefore it is almost inherent in the debt settlement process that your credit score will be damaged. I think it’s almost unavoidable. Thanks.