Settling your debt for less than you owe will lower your credit scores (Los Angeles Times)

Dear Liz: I have $175,000 in credit card debt. Almost all of this debt was due to balance transfer offers over the years, which I managed quite well to make sure I had no balances with high interest rates. Now with credit being so tight, one of my issuers has reduced my credit limits and I can’t find any balance transfer offers to extend my low rates.

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