Will your credit score drop because of an old debt?
Date: Thu, 05/30/2013 03:49
Will my credit score drop if I ignore or neglect threats from a collection agency regarding payments on an old debt? The SOL period on the debt has expired. My credit score is between 650 and 700 range. I have taken a lot of steps in the last few months to repair my credit. I have even refinanced my home loan in Mendocino, California. I just can’t afford to risk my credit right now.
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.