Quick Answer: Debt settlement can reduce what someone owes, but the company “Debt Services P.O Box 4672 New York NY 10163” is unidentifiable and potentially suspicious. Before working with any debt settlement company, consumers should thoroughly research the firm’s legitimacy and understand that settlement typically damages credit scores and may require closing credit card accounts.
Question:
Dear Steve,
I want to get out credit card debt,making payments but not getting ahead due to interest rates .
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I received notice from ‘Debt Services P.O Box 4672 New York NY 10163. claims to settle my bills for less then what I owe. I’m not familiar with this type of payment plans,what happens with my credit score?how does this work?do I keep my credit cards or do they get closed down?
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Tina
Answer:
Dear Tina,
I don’t have a clue who that company is.
I would recommend that anyone considering using such a company should read the following free guides.
- The Ultimate Consumer Guide to Checking Out a Debt Relief Company Before You Sign On the Line
- 10 Must Do Steps to Find the Best Credit Counseling or Debt Settlement Company for You
- How to Check Out a Business or Company to Avoid Getting Scammed or Ripped Off
Dealing With Debt? Understanding your options is the first step. See how all your debt relief options compare — including ones most sites won’t tell you about. The Find Your Path quiz gives a recommendation based on your actual numbers, and the Scam-O-Meter checks any company’s complaint history before you sign. Federal Reserve research shows bankruptcy filers recover faster than those who don’t file.
Tina, your credit score will be impacted in a Debt Settlement program and the cards enrolled and possibly any cards left out of the program will be shut down for purchases. In order for a company to settled debts, and it is a legitimate option if you go with the right company, but in order for yourself or for a company to get a creditor to take less than the full balance owed in the form of a settlement you have to be delinquent on the account. When you fall delinquent on the accounts that you settle will definitely have a negative affect on your credit score, and even if you dont fall behind on certain cards but have fallen delinquent on others creditors see you as a potential problem and may lower your credit limit or completely shut your card down for future purchases. Credit counseling will not have a negative affect on your credit except for the CC listed on your credit report, with the CC you will not be able to get a mortgage, but your score will not be affected. In Credit Counseling you will loose your charging privileges as well, but in certain cases credit counseling is the best option. On another note BK is the best option but do your research on all and learn the differences and choose what option is best for you. I am the owner of a debt settlement company, Consumer Debt Help Association, in Florida. Make good educated decisions!!!
Thanks for commenting Tim. Spot on with the advice.