I have been in a debt management plan for almost 2 years. Because of financial difficulties, some of my payments to the mgmt. company were either late or skipped. My credit report shows late payments to the creditors, and a notation that the account is in a DMP.
I am now back on track with my DMP. I have 2 questions:
1) how long will it take to improve my credit score (542)
2) how long will the DMP designation affect my credit?
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.