Consolidating your unsecured debt
Amounts reported to the IRS may increase your tax liability and amounts sold to another collection agency may do further damage to your credit report.If you are going to agree to a creditor settlement, make sure you request that the creditor mark the accounts as “paid in full” on your credit report and that the residual on the account is not sold or forwarded to another collection agency.Those benefits may include stopping late fees and/or over-the-limit fees, reducing or eliminating high interest rates and stopping collection calls or court proceedings.Debt Management Plans typically last three to five years and can help you reestablish a consistent payment history. Consolidation loans typically benefit people who have the ability to stop incurring more unsecured debt and want the convenience of one monthly payment.I let my mother have 2 credit cards in my name about 5 years ago. I know that it is my name on the cards and I am responsible but I don't have the money to pay them. Unfortunately, you are liable for the debt your mother accrued since you allowed her to use your credit cards.
Legal action may result in a court judgment and wage garnishment.Finance companies may provide unsecured consolidation loans to people with less than perfect credit but it will come at the cost of a higher interest rate.Higher interest rates equal higher payments which may make a loan a poor choice for getting out of debt.All of the accounts on the Debt Management Plan are closed or inactivated and a Debt Management Plan may impact your ability to open new types of credit while you're on the program.Because a Debt Management Plan provides you the opportunity to repay your unsecured debts without taking on additional debt, many creditors are willing to provide benefits to help you pay off the debt and get back on track.