Debt Settlement Enrollment Linked to Greater Credit Score Declines Than Bankruptcy, New TransUnion Research Finds

A new TransUnion (NYSE: TRU) analysis found that financially distressed consumers who enroll in third-party debt settlement programs may experience greater credit score declines than consumers who file for bankruptcy. The analysis also found that nearly half of debt settlement enrollees were current on their obligations when they entered the program. Three months before enrollment, debt settlement consumers appeared slightly less risky than eventual bankruptcy filers, with a median VantageScore® 4.0 credit score of 587 versus 570.