I have nearly $10,000 dollars in credit card debt and an average interest rate of 29%. I'm working two jobs at the moment and paying all I can each month, but with interest being so high my balances aren't receding. I'm going to grad school soon and need to get my debts under control before I go back to zero income. I have spoken with debt reduction Services and they seem legitimate, have a good reputation with the BBB, etc., but they say it will take 45 months to pay off my debts. I'm concerned about being unable to obtain any credit for the four years it takes me to pay off my current debt. Does this affect being approved for loans to buy a car or a mortgage on a house? If so, I'm not sure I'm willing to commit to such a program. Any advice?
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.