To be honest I don't really understand how credit fully works. I had a family member take out multiple credit cards in my name when I turned 18, I didn't know about them for years until I applied for my first card, was declined and checked my credit score for the first time. I have since paid all of them off in full aside from one Capital one credit card. My wife and I are now trying to get a mortgage and this is holding my credit score down to about 580 still so I'd like to take care of it. The credit card apparently had a limit of $2500 and was maxed out. It went to a collection agency who is now requesting $6000 with the interest accrued. It shows as $6000 on my Equifax report. Do I have to pay this in full to have it removed or can I take a settlement offer for the original 2500 owing. Does that still improve my credit or will it look worse if I don't pay the interest? Please advice.
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.