Before pursuing debt settlement here are some things to consider:
- Credit impact: May lower your credit score, as settled accounts are reported as “settled” rather than “paid in full.”
- Tax implications: Forgiven debt over $600 may be considered taxable income and result in a 1099-C. We encourage you to contact your tax professional regarding tax related questions.
- Eligibility: May be best suited for individuals experiencing serious financial hardship who’ve exhausted all other repayment options.
Note: This information is for general education purposes only and may not be specific to your situation.
Best Egg does not provide advice or make any specific representations or recommendations. Consulting a financial professional to discuss your options is suggested.
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