Dangers of Debt Settlement
Although it may sound pretty good in the beginning, there are a few disadvantages with debt settlement. I mean in the end, everyone will get paid, but it may come to haunt you by stopping payment to your creditors, especially as delinquent accounts can follow you for up to seven years, which is a long time to have paid debt shadowing your life. Also, any forgiven amount of money over $600 will be reported as income and will be taxed by the government… Rip off huh? And, if you debt is settled with your creditors, it isn’t wiped off your record; your account will be marked as “Charged Off Settled” or “Paid Settled.”