How you handle your debt has an impact on your credit score. For example, if you miss payments because you can’t afford your debt, you’ll lose credit score points. Choosing debt settlement or bankruptcy to deal with your debt will also result in credit score damage from which it takes several months, or even years, to recover. The debt consolidation process can hurt your credit score too. That being said, some debt solutions are still worth considering. Being debt-free is good for your overall financial health, and you can rebuild your credit score over time.