I owe about 30,000 to various credit cards. My credit rating is actually excellent--764. But I find myself with hospital bills, child care, mortgage, etc that I cannot keep up with. My credit card interest rates are as low as the companies will allow, yet I still pay out 650 per month to these companies. If I settle, how will that effect my credit rating? What is the best way to settle? Is settling this debt actually going to lower my monthly payments?
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.