I have about $25,000 in debt on 3 cards. I am considering using a company called Debt Reduction Services, Inc. They advertise that they are nonprofit and that they are A-listed with the BBB. I would have to pay a $40 fee, $578 a month for 5 years. It will be very hard for me to pay that amount but I have to figure out a way to make some progress as all I can do is pay minimum fees right now. I would really appreciate any info/advice. Thanks (I'm a single mom, not high income)
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.