Sorry, you can't write off interest on credit cards or credit cards fees. They wrote that out of law a while ago. One word of caution as well that you may want to talk about with your credit counselor is if you settle for an amount that is $600 or more difference from the original debt, you will get a 1099 and will have to record that as income and pay taxes on it next year. Most people don't realize this and end up paying a lot in taxes. If you can settle for $599 it's much better.
So for example if you owe $1000, and you settle for $100, then you have to pay tax on the $900 difference.
This answer was edited by Jodi-Mesa 257 days ago.
Reason: add
