8. Will my credit score be affected?
Yes, your scores will be negatively impacted. Many times a client cannot afford to pay into the program and make payments to their creditors at the same time. And most creditors will not negotiate reduced balances if they are receiving payments from the client. Once payments have stopped, they will report this to the credit bureaus. As a result your scores will be negatively affected.
Because of this each client will need to determine exactly what their credit score is doing for them at the time of hardship. We have found most clients view this as a fair trade in exchange for the amount of money they save. During and after the completion of the program there are many things that can be done to re-establish your credit.