This is where some people get confused about the definition of debt consolidation versus debt settlement. If you obtain a debt consolidation loan, it is treated no differently by the credit reporting agencies than a regular personal loan. Make all the payments on time and pay off the full loan balance and you are good. A debt settlement is treated differently. A debt settlement is an offer to pay a delinquent account at a discounted rate to resolve the matter and remove the account from delinquency on the credit report. Once a debt is settled, although the account may no longer be considered delinquent, the previously missed payments and other negative credit events tied to the account can stay on your credit report for up to 7-years from the date the account was first reported delinquent. This date is referred to as the original delinquency date.