Debt settlement could have a positive or negative impact on your credit. For instance, if you are delinquent on paying your creditors and you settle and pay the debt, you may see a positive impact on your credit. However, if you are not delinquent on your debts but you choose to settle, you may see a negative short-term impact. No matter your circumstances, it is generally more important to pay off your debts than to worry about the impact on your credit, because ultimately, achieving financial freedom is more important than maintaining a good credit score.