Consumers who enlist in a debt relief programme because they are unable to handle their debt burdens but have continued to make payments, even if sporadic ones, have less bargaining power than those who have made no payments. As a result, one‘s first step is to make payments entirely. "Credit scores can endure during the debt resolution process, especially at the start, "Credit scores typically recoup over time as the customer begins to make payouts on settled debt." 

Being delinquent on your debts and trying to settle them for much less than you owe can have a significant impact on the bottom line, likely lowering it to the mid-500s, which is considered poor. The bigger the drop, the higher you're score before you fall behind. Late payouts can be reported to the credit bureaus for up to seven years.

Trying to make no payouts also results in the accumulation of late fees and interest, which add to one's balance and make it more difficult to pay off your debt if you are unable to settle. When a consumer's debt becomes delinquent, he or she can expect harassing debt collection phone calls. Creditors may also decide to sue consumers for debts exceeding $5,000—debts cost their trouble, in other words—resulting in garnishing wages. "The more cash you possess available to settle the debt, the sooner you will be able to resolve it." The longer your debt goes unpaid, the more likely it is that you will be sued.

There have been no assurances that the creditor will agree to a settlement or that it will concur to pay a debt for less than you had hoped. For example, Chase will not collaborate with debt settlement companies. It will only work with individual consumers or with nonprofit, licenced credit counselling agencies that assist consumers. The Consumer Financial Protection Bureau (CFPB) warns that the cumulative penalties, as well as fees on unpaid debts, may cancel out any savings achieved by the debt consolidation company, particularly if it does not settle some or all of your debts.