I have been in a dmp for 8 months. My payments actually went up by 200.00/month in the plan. I have been making payments, but I can't keep up with it any longer - struggling to make the payment and falling behind, borrowing money from EVERYONE. credit counseling service says that the payment can not be lowered - CC companies base plan on balances. Can anyone give any suggestions? I feel like my only option is to quit the program and quit paying, but that will lead to default...
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.