can they add interest to my debt?
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can they add interest to my debt?
This is the third collection that has had my debt. I made arrangement with the first company to pay certain amount every month. Since then I have not missed a payment. This company wants to reduces the debt if I pay-off suggested balance of ($9000)on a credit card because I am retired and don’t have the money to pay it off otherwise. I think the card is a bad idea. I have not paid any interest on the balance, can this company add interest to my debt?
Asked on May 16, 2009 under Business Law, Michigan
Answers:
GW, Member, Michigan and Hawaii Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
There's not enough information here to completely answer your question, but:
1. If you charge a debt payment on a credit card, the credit card company can charge you interest on the balance.
2. The terms of any agreement you made regarding interest on your payment plan should be spelled out in the agreement. If it's unwritten, things could get pretty complicated.
3. If you fail to complete the payment plan as agreed, the original debt will remain, less any payments you made, and will accrue interest.
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