What is the cost of a settlement program? I've fallen behind on my credit card debt. One creditor just sent me a letter offering payment options, but also suggesting that my debt will be forwarded to a lawyer for review, and also that no decision has been made to sue me yet. Can they say that? I got scared so I called and arranged minimum payments that the rep said will buy me 30 days."
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.