Yes, as will every other option available to someone who cannot maintain timely payments on their debt. More often than not, being in debt, especially overwhelming debt, your credit accounts already have, or are about to negatively affect you. Depending on how long you have been delinquent in payments, negotiating and settling these debts for good will have an overall positive effect on your credit score. Settled accounts and or zero balances are seen as “positive” when compared to unresolved debts. Your major concern should be dealing with the debt first! Then worry about rebuilding your Credit, it can and will recover.