Debt Settlement: The Cons
DEBT SETTLEMENT: THE CONS T RIGID CONTRACTS There isn't much room for error. Miss a payment, and you might just lose all the money you've already given the agency. FEES TAXES A 2009 look at The Association of Settlement Companies (TASC) showed average annual fees of $2,930 per consumer. Forgiven debt in any amount greater than $600 will be treated as taxable income, meaning that you will have to pay in April. $2,930 >600 LEGAL TROUBLE COMPLETION RATES CREDIT SCORE Avoiding payments, ignoring creditors, and other violations of your terms and conditions can damage your relationship with creditors and land you in hot legal water. The National Foundation for Credit Counseling warns that debt settlement can really damage your credit score. "Payment history" and "amounts owed" are the two most important scoring factors, and both are hit hard by debt settlement. The TASC cites a debt settlement completion rate of 45%. However, many financial experts argue that the real rate is much lower, potentially in the 20s or less. +125* The NCC calmalea thate couer's credit ore can drop between 65 to 125 poina aaa relt of debe w ement WANT TOLEARN ABOUT BETTER WAYS TO GETOUTOF DEBT? wwW.CLEARPOINTCCS.ORG
Debt Settlement: The Cons
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