Potential negative consequences from participating in a debt negotiation program include:

1. The stopping of monthly payments to creditors will cause accounts to become delinquent and may have a negative impact on one’s credit rating. Late fees, penalties, and interest may accrue on debt and creditors may raise interest rates.

2. Collection efforts from creditors may intensify, or become more aggressive and lead to law suits, and if a judgment is obtained, may result in garnished wages.

3. The amount a debt is reduced in any negotiation may be subject to federal and state taxes. Consult your tax advisor.

4. A negative “settled for less than full amount” notation may appear on a consumer’s credit report for any settled debt at a reduced amount.