I an planning on going back to school but I am in default on a previous student loan in the amount of $4,259.77. DCS has my loan and I called them about getting out of default so I can go back to school. They offered me a consolidation plan saying if I make 3 consecutive monthly payments Of $50.00 I will be out of default and will be able to receive student aid again. Will consolidation get me out of default and will it only take me 3 months and not 6 or so like I have heard of before? Or are they just feeding me a line of BS just to get my money? I have never dealt with credit collectors before but I know that they are not the most honest companies out there and I am uneasy about trusting them.
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.