I have several credit cards on which I've negotiated favorable agreements. I have one agreement with a collection agency who previously threatened to place a lien on my property an file jugement against me. I have paid all my agreements on time. But, one agreement is expiring and the original creditor will not give me a new agreement. I cannot afford the minimum now and they recommended I call a debt management company (non-profit) listed on my statement. The debt management company wants to negotiate with the collection agency to reduce my payment. I'm scared the collection agency will refuse and get spooked that I'm in deeper trouble. I worry they will then re-double their efforts and demand payment in full. Shoul I just continue with my current arrangement, or should I let the debt management company try to negotiate? What's the worst that can happen?
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.