So I am checking out using MMI Money Management International… If you pay this off before the designated years can you at that point just start re-establishing credit? There is also something about a tax forgiveness… do you know about this? Thank you
Hello Le Anna,
If you are looking at MMI, then I assume you are looking at a credit counseling type of approach to paying down your debt whereby MMI will contact your creditors, attempt to renegotiate your interest rates lower and put you on a plan to have the debt paid in full within 3 to 5 years. Going with a plan like this does not involve any debt forgiveness and therefore would not trigger any tax liability for any debt forgiven.
You may be confusing this with debt settlement which I don’t believe is an option that MMI offers, unless they have recently changed this.
Regarding your credit, yes you can payoff your debts early and yes you can start re establishing and improving your credit even before you have the debts paid off. You do not need to wait until you are finished paying the debt in full to start attempting to add additional positive trade lines to your report, and disputing any inaccurate negative entries.
Damon is a talented independent debt coach that provides in-depth assistance and consultations for people struggling with debt. If you want a personal debt coach to help you through a difficult situation or want assistance to find secret discounts offered by debt settlement companies I think Damon Day is an excellent person to contact for advice and assistance. He can be reached directly at DamonDay.com
If you have a debt related question you’d like to ask, just use the online form.Will Going With Money Management International Lead to a Tax Liability? - Le Anna by Damon Day