I defaulted on a federal student loan, which had about $18,000 left on it, back in 1983 or 1984. Collection agencies have contacted me a few times over the years but I ignored them. I have not heard anything from them for many years now. Suddenly, I received notice that my wages are being garnished. OK, I deserve that. But what they want from me is $81,950. 30 years of accrued interest. I am just two years from retirement. How can I get this surreal amount reduced? Can they also garnish my social security? If I live to be 110, it will not be paid off. Surely there is some way to compromise on the amount?
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.