Debt Relief Service
Should You Use a Debt Relief Service?
There could be times when a debt relief service comes into your thoughts. If you have found yourself with a huge amount of debt with no idea how you are going to pay it off, you may be thinking a service that promises you they can erase your debt for pennies on the dollar is the answer to your prayers.
Beware! They may not be telling you the truth. Debt negotiation can be risky and can carry serious, long-term consequences to your credit report, making it hard for you to get credit in the future..
If you are considering any debt relief service, read the fine print. Make certain you completely understand the terms and what they are promising you. If companies are offering you the following, avoid them at all cost!
My daughter did use a service once and they charged her a $350 fee up front. They ended up getting a few of her creditors to accept a lower payoff. That was a good thing. Unfortunately her 3rd payoff was too high for her and the company then dropped her.
I am not sure if she had additional fees with them but I do remember that the money the creditors reduced her debt by, she later received a notice from the IRS that that was considered income and she needed to pay taxes.
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