Offers to Reduce Your Debt Or Make You Debt-Free May Make You Worse Off
Debt relief and debt settlement companies seek out consumers with a lot of debt and make offers of help to get them out from under the debt. The way it often starts out is after consumers get turned down for a personal loan, a mailing follows from these company offering a larger loan than what they were recently turned down for and in addition, this new offer is at a surprisingly low interest rate. A very enticing scenario that is hard to resist, especially for consumers who are already having credit related problems. So, they call the company about the offer only to be turned down for the loan but instead, are offered a debt-settlement or debt relief program and led to believe that through this program, they will be set up with payments that fit within their budget. Those who sign up for these programs are often told to stop paying their credit card bills and other debts and instead put payments in a special bank account with these companies that supposedly are going to get creditors to reduce and/or forgive the consumer’s debt. PLEASE, DO NOT DO ANY OF THIS!!!! Stopping payments directly to creditors can lead to fees and big penalties, hurt your credit score plus result in lawsuits against you. And there is no guarantee that these companies will get your debt reduced and if they do (which usually is only for the smallest debts you have and is done at the outset of your entering the program and then nothing after that…), you may end up with income tax liability based on forgiven debt that you cannot afford to pay. Before enrolling in a debt settlement or debt relief program, contact Pine Street Legal first for a free consultation to discuss options to your credit related problems at (215) 345-9214, nkanter@pinestreetlegal.com.
Tags:
Related Posts
- Your Rights Under The Fair Credit Billing Act ( September 17, 2019 )
- What To Do When You Are Served With A Debt Collection Lawsuit ( September 12, 2019 )
- Beware Of Medicare Genetic Testing Scam ( September 10, 2019 )
- What Should You Do If You Get A letter From A Debt Collector? ( September 9, 2019 )
- Social Security Number Identity Theft ( August 8, 2019 )
- Duties Of Furnishers Of Information On Your Credit Report ( August 6, 2019 )
- Do You Know Who Beside You Can Legally Pull Your Credit Report? ( August 5, 2019 )
- Keeping Online information Safe By Creating Secure Passwords ( July 20, 2019 )
- How To Avoid Phishing Scams ( July 18, 2019 )
- Federal Law Limits Debt Collectors ( July 14, 2019 )