“Most major creditors will re-age your accounts after you’ve made three on-time payments in the required amount,” says Thomas J.Fox, community outreach director for Cambridge Credit Counseling.The debt snowball is when you pay off your debts one at a time, starting with the lowest balance.
Before we dive into the different debt relief options, understand that the debt you carry makes up just under one-third of your credit score.
Make sure you fully understand the potential impact of any debt relief program before you sign up.
Don’t be afraid to ask the credit counselor how a new plan could alter your credit.
It doesn’t necessarily represent exactly what will happen in your case.
How far your score drops—and how quickly it bounces back—depends on a lot of different factors.