What is the downside to debt relief?
Stopping payment on a debt means you could face late fees and accruing interest. Additionally, just because a creditor agrees to lower the amount you owe doesn't mean you're free and clear on that particular debt. Forgiven debt could be considered taxable income on your federal taxes.
How is debt relief done?
Debt relief refers to measures to reduce or refinance debt in order to make it easier for the borrower to repay it. Options for debt relief may entail forgiving a portion of the debt's principal, lowering the interest rate, or consolidating several debts into a single lower-interest loan.
What does it take to qualify for debt relief?
To qualify for National Debt Relief's debt settlement program, consumers must have at least $7,500 in unsecured debt for a qualified debt type. Qualified types of debt include major credit cards, department store cards, personal loans, medical bills, credit unions, some secured debts and some private student loans.