Context: After being unemployed I have fallen in debt with credit cards (i.e. unable to make payments during my unemployment) because of the circumstances and my credit score I am unable to apply for a bill consolidation loan.
Yesterday I received a call from a company (will withhold name) offering Financial Rehabilitation as an option out. From what I was told, during this 23 month process I would essentially stop paying all my accounts so that they will go into collections. This is when the company will step in by challenging the validity of the 3rd party collectors right to collect on my debt. By doing so the company has stated that not only will they be able to clear my debt but also raise my credit score in the 23 months. Of course it is important to note that I will be paying this company for the 23 months for their service.
While this sounds like a good plan (almost too good to be true) what worries me is the fact that at any time the debt collector can hand back the debt to the original creditor who can then use legal action against me.
As this is the first time I've heard of such a program I would like to know is it even worth the investment or am I better off just calling the cards myself and seeing if I can negotiate payments/payment plan?
Submitted April 17, 2019 at 03:51PM by RozzlynRoux http://bit.ly/2Xsa0Ez
