I have about $100k in credit card debt and have not made a payment in over 5 months, although I have been in frequent contact with all of my creditors who call me frequently. My largest creditor is BoA and has offered to settle for 20% of the balance and said they are getting ready to charge off my account. I am inclined to accept their offer, which they put in writing and faxed to me. Is there anything else I should do rather than just send a check to them? I know I will get a 1099 and that my credit is now damaged.
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.