I have obtained a copy of my credit report recently. The status of an account is “charged-off”. The balance is $7500. However, the same account is showing as “past due” with a balance of $4500. How can the total balance be past due? The account has been charged-off. I am totally confused. I have another credit account with a bank in Gilroy, CA. The balance in the account was $30,000 in May 2013. Now, suddenly, the balance has dropped to $25,500. I have always heard that balance increases from time to time. How come the balance has dropped?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.