I am preparing to pay outstanding debt to several credit card companies. One has offered an amount lower than the outstanding balance to settle. They have told me that they will report to the credit bureaus that the account has been "settled". I have been told that when you want to repair your credit score, it is better to have on the credit report that the account has been "paid as agreed". The credit card company won't do that. I understand that this will negatively affect my credit score. If I pay the entire amount due, will they then report "paid as agreed"?
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.