A debt settlement may hit your credit score since you settle with your creditors by paying lower than what is owed.

If I do this how bad will it hurt my credit score

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A debt settlement may hit your credit score since you settle with your creditors by paying lower than what is owed. However, this is far better than defaulting on the loan or file bankruptcy. And if you can somehow negotiate with your creditors and remove the negative listing ("Paid as settled" or "Paid as agreed") from the credit report by proper use of the pay for delete agreement, you are the winner.

Check out the urls provided below to know more:

http://www.ovlg.com/letters/pay-for-delete-letter.html

http://www.ovlg.com/debt-settlement/#13


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