When you settle a debt that's on your credit report, it can negatively affect your credit. Credit Score Impact. Most of your credit and loan obligations are reported to …

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While debt settlement can be the best option to eliminate outstanding obligations, it can negatively impact your credit score.

Credit Score Drop: If you are behind on payments, this will still impact your credit report, but often times it can be noted as a disputed debt. You may owe taxes: As  …

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