What should a settled debt look like on your credit report?

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September 14, 2026 / 10:28 AM EDT / CBS News

With credit card rates now hovering above 22% on average and household debt balances growing rapidly, paying down debt can be a lengthy process in today's economic climate. For some borrowers, that means finding another way to resolve what they owe on their high-rate debts. And, while there are a few different routes you can take to do that, negotiating a settlement that closes out the account for less than the full balance is a common option to consider right now.

Getting to the point where your credit card debt is settled can offer some financial breathing room, particularly if the alternative was continuing to struggle with an unaffordable balance. But settling the debt for less than you owe doesn't just erase the payment history that came before it. The late and missed payments on the account that led up to the settlement can remain on your credit report for years, impacting what lenders see when you apply for financing.

A settled credit card debt can also have an impact…

Original source: https://www.cbsnews.com/moneywatch/