Most clients who enroll in a debt settlement program will see their credit scores go down. For consumers that are already late on all of their bills or in collections, the effect may be minimal but PDI can not predict with any accuracy how much your score will fluctuate. Please keep in mind the settlement process may take several months or even several years for any given account. Thus, if maintaining a high credit score is a top priority for you, the debt settlement process may not be a good fit for you as you will see a damaging effect on your credit rating.
If you are unsure of your present score, we recommend you obtain copies of your credit reports and scores from the three major credit bureaus via www.annualcreditreport.com. That said, if you are current on your bills and decide to enroll in our debt settlement program, the effect on your credit score may be significant since accounts enrolled in our program will generally be reported as delinquent (30, 60, 90, 120 etc) up until the time PDI is able to obtain a settlement.
Upon completion of the program, your overall financial situation (not including your credit score) should be improved even though your credit rating may not be good. The money you had previously saved towards settling your debts can now be put towards personal savings, retirement, a college fund, a down payment on a vehicle or home, etc.. However, please note that there are specific Credit Repair laws that do not allow us to discuss, offer or suggest that our program will improve your credit score, or have an effect other than negative on your credit report.
If you decide debt settlement is not for you, remember that bankruptcy may remain on your credit report for up to 10 years and will remain in court records forever.
We urge consumers to take into account the pros and cons of the credit issue when considering our services. While your credit score may suffer, it is important to weigh this against the benefits such as bankruptcy avoidance and settlement benefits.