Capital one consolidating credit card debt
Finally, credit scores suffer — sometimes even dramatically — from debt settlement.
That is why it is advisable to try and settle a credit card debt before you have defaulted on your account and it is charged-off.
Once you have paid off the entire amount, you can ask the credit bureaus to change the account status to: paid in full, balance zero.
The account will still show that it was charged-off for seven years, but your credit score will improve and future lenders will look more favorably at your status.
If trying to deal with charge offs is overwhelming you, it might be wise to find a non-profit credit counseling agency and ask for help there.
The credit counselors can help you better understand how to manage your money, set up a budget, and, if it helps provide a solution, enroll you in a debt management program (or DMP).
If this happens, be sure your credit report reflects that the debt was paid in full.