What debt relief agreement with creditors means
Posted: 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/
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/