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eritrea
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Joined: 25 May 2007, 13:45

What debt relief agreement with creditors means

Post by eritrea » 01 Dec 2023, 08:57

What happens if you take debt relief?

Debt relief can take a number of forms, including reducing the debt, lowering the interest rate on it, or extending the period for repayment, among others. Creditors are often willing to consider debt-relief measures when the alternative is total default by the borrower.

Why is debt relief bad?

It is considered a risky way to negotiate and lower your debt because it damages your credit score, has tax implications, may not solve your problem and more.

https://www.consumerfinance.gov/ask-cfp ... e-en-1457/