Before signing a contract with a debt settlement company, it's important to know the negative impact a debt settlement could have on your financial future.
With a Debt Management Program, the overall balance is not reduced (just the minimum payment due and interest rate), there are no tax implications and the creditors will not report that the debt was settled. The facts about a debt settlement are outlined below:
If you are looking for assistance with debt, a good first step is to seek advice from a not-for-profit entity. By working with a nonprofit agency like Consumer Credit Counseling Service of Chattanooga (CCCS), fees are minimal in comparison, and your Certified Credit Counselor will take an overall look at your financial situation to provide the best advice and options.