Is there a such thing as "canceling" your credit card debt?
Just yesterday I received an unsolicited email about a a credit card debt cancellation service called DebtClear. Coincidentally, I'm now looking to get out of debt so it's peaked my interest. However, I want to be careful. The program (called Court Mediation Services) explains how it can legally eliminate your debt (usually in several months) and get your credit re-established. Supposedly their organization is a team comprised of debt management specialist and debt attorneys... It sounds good but I have some suspicions. I filled out a simple opt-in form and they sent me to this url: http://www.debtclear.com/programs/5877587?nid=74923. I want to know if anyone has heard of this organization before or what kind of results they had with it. Anybody have any info on this?? Thank you kindly to all who can offer some help...
Public Comments
- Honestly I have never heard of it but I would STAY CLEAR from these offers or companies that CLAIM they can clear your debt (whatever it may be). Either it is a scam or you pay them money to basically write dispute letters to the credit bureaus. If the disputes evenhave one error or slight mistake the credit bureaus usually remove that debt BUT do not be surprised that they reappear on your credit shortly thereafter. Basically you could be paying someone that you can do very easily for the cost of a postage stamp and certified mail. There is NO legal way to remove your debt unless you pay it AND the seven to 10 years has elapsed to fall off your credit files.
- It's a scam. What they typically do is offer the credit card companies less than the debt is worth (say, 25 cents on the dollar), then charge you a very high fee (another 25 cents on the dollar) so they'll tell you they cut your debt in half (50 cents on the dollar total) but half of that you're paying to them and, since you didn't pay your full debt with the companies, it actually trashes your credit.
- Are you serious? I am really curious how they can get you out of debt.
- Boy this smells like dead fish to me. By the way, according to IRS rules any debt such as Credit Cards that is canceled or forgiven becomes taxable income to you and you have to claim it on your income tax returns (federal and state). I would stay clear of this crap. Someone is making money some where in all of this.
