Never thought I would be in this position as I've never defaulted on anything in my life caught business partner in a scheme to create new LLC and steal company. As a result, I am now dealing with $50K+ business debt spread out over 9 personal cards.
I have been playing various scenarios in my mind but of course, the more I read online, the more questions arise.
1) Would it be advisable to exhaust remaining credit on these cards in the next 1-3 months before defaulting?
2) Some of the cards have smaller balances ($2K or less), should these be balance transferred to cards that still have remaining credit so that ultimately there is a lesser amount of charged off accounts? Example = I have 4 Chase cards, should these be transferred to just one card if possible?
3) I have read that credit card issuers frown upon settling accounts that contain balance transfers. Does this apply to all issuers or are some more lenient than others?
4) Account Ive had longest is a Citi card. Currently has $13K+ balance. Would it be advisable to transfer this $13K to other cards in order to keep this account open since it's the oldest?
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.