When you want to explore an alternative to bankruptcy by paying down a part of your balance to your creditors, we can help. We can help you find a debt settlement consultant that will work to decrease your credit card debt.
Don’t entrust your debt settlement to some shady service. Virtually any good debt negotiator will provide you with the following specifics prior to enrolling:
- Charges: all fees must be thoroughly enumerated.
- Schedule: they have to tell you when they’ll get in touch with the credit card providers, not to mention how much money you must have saved.
- Dangers: they must explain the adverse implications for your credit scores
Be sure to find out if your Crestwood debt settlement specialist is reputable. Check the following:
- Credentials: Major certifications include AFCC and IAPDA.
- Payment Structure: Make certain the rates you pay are sensible.
- User Testimonials: Try to find positive evaluations from prior clients.
Should any Crestwood debt settlement services try to charge you advance fees, don’t be a part of their services. This is not legal!
Debt settlement is the only debt relief option that decreases your overall credit card debt, versus just the fees or interest rate. But it involves putting your money into a savings account every month instead of paying back your credit card bills. When you have enough money saved, you send them the settlement sum. Not surprisingly, settling your debts like this can hurt your credit rating. Are you ready go over the options with a debt settlement specialist in Crestwood, KY?
As you probably know, debt settlement is not without its disadvantages. For instance, settling your debt is bad for your FICO score. Ultimately, what you owe won’t be paid in full. Since debt consolidation involves paying off creditors each month, debt collection calls ought to become less frequent. As any Crestwood debt settlement professional can tell you, this is often not the case during debt negotiations. You might have to wait six months for anything to happen, during which time your debts will mount.
Don’t forget, credit card providers are able to sue a borrower to help them go after a debt. The risk of your creditors filing suit is greater. Why is that? Because you quit repaying your creditors.
Suitable candidates for debt settlement have at least $10,000 of debt, are considering bankruptcy, and cannot afford the minimum payments on their credit or store cards each month.
If you fall into this category, don’t fret. We estimate that 1,483 Crestwood residents owe this much debt.
People with debt to income ratios of 50% or higher are perfect candidates for debt relief, either settlement or consolidation.
In short, if you are dedicating over 50 percent of your income in credit cards, home loan, and auto loans, you have to talk to a debt relief specialist. Given that the average income in Crestwood is $5,483 a month, we’re talking about $2,742. You really should try and have a ratio that’s closer to 36%, or $1,974 for the average Crestwood consumer.
Consolidating vs Settling Your Debt in Crestwood, KY
Settling your debt and consolidating it are two distinct solutions.
While debt settlement leads to reduced debt, management won’t.
You continue to pay back your creditors each and every month under credit counseling; thus your credit score is not damaged nearly as drastically as it can be during a debt settlement, during which you stop repaying what you owe. On the other hand, debt consolidation generally takes longer and eventually you’ll pay back 100% of what you owe. Visit here to read more about credit counseling in Crestwood, KY.
Whereas debt management programs have ongoing monthly fees of $25 to 40, debt settlement charges are usually charged after each creditor is paid off. The majority of settlement firms charge you a percentage of the balance you want settled, often around 15 percent. Generally they are prohibited legally from making you pay until a debt has been settled.
Debt Settlement Firms: Crestwood, KY
- KY Credit Counseling Service? Contact us!