Hi - My husband and I have been having financial problems for over a year now. Last year I signed up with a credit counseling Service and had them lower my interest rates and I paid them one lump sum each month that they sent to all of my creditors (Oh and by the way, my main reason for signing up for a company like that was all the advertisements I saw stated "Reduce your monthly payments and interst rates". Well they did reduce my interest rates, but my monthly payment was only $50 less than what I was paying. When I told them I couldnt afford the monthly payment they said that was the best that the credit card companies could do.) So I paid the monthly payment for three months until I could no longer afford it. I also called each Company after I stopped dealing with the Credit Counseling Service and explained our financial situation and how much I could afford to pay, but none of them wanted to work with me. So as of August of last year I stopped paying all of our credit cards, since we could barely afford our house payment and grocery bill each month. Last week I sent a letter to each of my creditors asking to settle the account and pay 30% of what is owed, since a family member lent me some money. Three of my creditors have already sent me a summons. I never answered any of the summons. (I didnt know how to handle the summons and every time I got one I through it in a folder, with the intent of taking care of it. One week turned into two weeks turned into 1 month. Out of sight, out of mind I guess.) So now that I am trying to clear all of these debts what do I do about the summons? Do I send the attorneys the same debt settlement letter I sent the others? Have I ruined my chances to work with them? I live in NY State and really need some help.
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.