Participating in debt management plan is good. This means that you have the good intention of paying back the money. Your credit report will have a comment saying that you are paying an account through credit counseling. This comment, won't hurt your report. However, lenders might not be keen on lending you money if you are applying for new credit. Regular payers may gradually have an advantage and may be able to negotiate new loans with lower rates of interest. But that may be a gradual process. _________________ Keep in touch
Debt management is good. Carol is correct it will show on your credit report but it is better than getting behind on your bills and not paying at all. Debt management can be a way of getting out of control bills back in control and it keeps the interest rate lower.
Joined: 27 Jun 2006 carol's page Posts: 1299 Location: Los Angeles, California
True Firey. But Jorden also remember to be regular with your payments and make them on time. Make sure you work with a reliable debt management company. If they are late in paying your creditors say by 30 or 60 days, it will have a negative mark on your report which will stay on for the next 7 years.
On the other hand if you are regular with your payments, you could later try and negotiate with your creditor to lower the rate of interest. _________________ Keep in touch
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.