Quick Answer: When dealing with 5-year-old debt totaling $40,000, borrowers should build emergency savings first before attempting repayment since original creditors likely sold the debt to collection agencies. The advisor recommends considering settlement options rather than full payoff, as additional fees may apply and the debt may be approaching statute of limitations protection.“Dear Paula,In Debt …
Quick Answer: ClearPoint credit counseling suits borrowers with steady income who can afford reduced payments, while bankruptcy helps those unable to manage minimum payments despite restructuring. This borrower paying $900 monthly minimums on $31K debt at 24%+ interest rates with unstable employment income may need bankruptcy’s fresh start over counseling’s payment plans.“Dear Paula,I am at …
Quick Answer: The payday lender’s 1099-C threat shows red flags of a potential scam, as legitimate 1099-C forms are issued after debt settlement, not as collection threats. While creditors can legally issue 1099-C forms for charged-off debts after 180 days delinquent, using this as leverage to demand immediate payment is suspicious collection practice.“Dear Paula,i recived …
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