I know most people would say to not withdraw money or take a loan on a 401K account, but wouldn't it be better than going to settlement and ruining your credit rating? Part of me really wants to do this so we can avoid major negative marks on our record. Money is tight right now but in five months, our cars are paid for and my husband is gaining additional work. These things would help with overall cash flow each month. So if we can make it through six months, we'll be doing better. Does that make sense?
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.