Hi, Sadly because of the recent WGA Writers Strike in Hollywood and a recent work injury I totally overextended my credit over the last 9 months. I have close to 80,000 I owe to credit card companies. I just signed up for debt settlement and wondering about keeping a few credit cards with small balances that I kept from going delinquent. All the others are 90+ days late. I was planning on paying them off as they have low balances so I will still have cards for emergency purposes, but my Debt Settlement company said it will be detrimental to me as the companies I owe money to might not offer the lowest payoffs since they feel I still have other credit cards I will use. Does this sound right to you?
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.