If an account goes to collections and IF the CA allows a payment plan, how is that reflected on your credit report during the time it's being repaid?
For example, I have a card that if it goes to collections will take 3-4 years to pay off completely (without settlement). Is this just as bad for my credit report as settling? I am debating between heading to collections on my own, settlement with a company, or a dmp plan. I have a DMP already lined up with a company that is rated B+ by the BBB.
If a card is in collections and being repaid, are you still charged interest?
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.