Anyone have experiences 1) pay off debt by debt management co 2) did you get a 1099 explain how this works?

3) what happens with credit repair companies? They claim to negotiate ones pay off of credit cards, and increase ones credit rating.Anyone have experiences 1) pay off debt by debt management co 2) did you get a 1099 explain how this works?
If you go with a debt settlement company and your creditors write off more than $599 then you have claim it as income on a1099c form to the IRS. Debt settlement companies don't improve your credit unless you have horrible credit to begin with. What creditor will want to loan you money in the future when you credit report says ';settled in full'; rather than ';paid in full';? If you already have bad credit settling will at least show an attempt to repay some of your debts. However, be wary of debt settlement companies, as I've heard many, many horror stories.





As far as CCCS companies, they work as long as you are going with a reputable not for profit agency. They will repay your debt in full at a lowered APR and monthly payment. These companies will help your credit in the long run if you stick it out. While your on the program, however, you will not easily be able to get unsecured debt. As the above poster mentioned, they basically charge you a fee to lower your payments, but honestly, the amount you save on interest is well worth it. Some creditors will not let you work out arrangements with them directly. If you do want to work directly with the creditor, make sure you have a good story, such as an illness or job loss as just being overextended will not cut it for internal hardship arrangements..Anyone have experiences 1) pay off debt by debt management co 2) did you get a 1099 explain how this works?
In the credit world a debt counciling company is treated the same as a bankruptcy. You can instead to this yourself- call the creditors %26amp; threaten bankruptcy, they will work with you for the most part. Just make sure that all agreements are ones you can live with %26amp; ask them to update your accounts to show current after 3-6 months of making the newer payments- get it all in WRITING!





1099 is where you worked for someone who did not take out taxes. This means you have to pay the taxes by 4/15/08 for that income. Just take it with you when you file- the tax preparer will handle it.
Hi,


I used ';Credit Solution'; to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:


http://starturl.com/tyjxb
I have done a credit counselor thing to pay off my debt. I would not do it again. Basically, they call your creditors and ';negotiate'; a lower interest and lower your payment. You can do it yourself for free. When you do the credit counselors, you still pay them. They were even late on one of my payments. You pay them to pay your creditors. You can call the companies you owe and tell them you want to pay them off and instead of going to a credit counselor company or debt management company and paying extra or doing a bankruptcy, then you would rather work with them for them to lower your interest and monthly payment until you can pay them off. Your credit rating will increase as long as you make the payments and as you pay off your debt. It is a slow process whether you or they do it, only you do it with less money going out of your pocket. I hope my experience helps you.





I did not have a 1099 so I cannot help you on that one. Have a good day.