I, almost, signed up for a debt consolidation with a company called "Fidelity debt Consolidation". They said I could settle my debt of $24,890.00 for less than $14500.00. In my first month and second I would pay $670.00 dollars, which it would go for them. They told me after that I would pay $430.00 for 30 months, which the many would go to a trust fund under my name. MY problem with that is there too many fees, from them and I also would have to pay $9.99 for maintance on my trust fund account, plus $25.00 for each payment for the settlement accounts. In three years this $9.99 would become 359.64. After I canceled my account with them they told me I would not be able to settle with my creditors as they would. Is it true? Did I made a mistake?
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.