I've been looking around and I see pros and cons to doing debt settlement. I've heard some cases where the creditors will file late payments. Question: How long doe it take for late payments to fall off your credit report? Also, I read this blog: iclosem.wordpress.com and the author does a good job of breaking down the pros and cons but does working with an attorney based debt settlement company make a difference? Any input from you guys would be GREATLY appreciated!
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.