Do you wish to cut back your debt to 40-80% of the amount you borrowed? Enlisting the services of a solid Dayton debt settlement service could be the solution you need.
At KY Debt Relief, we can match you with a debt settlement agency that will:
- Make a deal with your credit card companies.
- Request a written agreement for debt forgiveness.
- Establish a plan to pay back what you owe in 2-4 years.
Isn’t it time to get rid of credit card debt?
Of the 12,114 people who live in Dayton, 1,200 need help with debt. You are not alone. Get help with debt today.
Finding a Debt Settlement Firm: Dayton (KY)
You can’t trust your debt settlement to some unethical firm. Any good debt negotiator will disclose the following specifics prior to joining, such as how much the costs are for their service, how much time until they contact your credit card companies, and how much impact debt settlement will have on your FICO scores. You should make sure your Dayton, KY debt settlement service is an honest one. Research the following:
- How long have they been operational?
- How much debt have they settled?
- How much are their fees?
- What is their rating with the BBB?
- How effective have they been?
- Are they licensed in Kentucky?
No Dayton debt settlement company should charge fees before getting started!
Debt settlement programs provide a few well-known advantages:
- Debt Reduced by 20-60%
- Huge Interest Savings
- Short 3-5 Year Schedule
- Convenient Repayment Structure
- Alternative to Declaring Bankruptcy
However, it means depositing your money into a checking account each and every month rather than repaying your credit card balances. When you have enough money saved, you pay them the settlement amount. As you can imagine, settling your debts in this way can hurt your credit rating.
You need to speak to a debt counselor to determine if debt settlement is a good option.
With debt settlement, you just stop making payments to the credit card issuers. Rather, you put aside money in a special savings account until you’ve got enough money to pay the settlement arranged by your Dayton debt settlement firm. Regrettably, your FICO rating gets even worse. Of course, declaring yourself bankrupt would ruin your credit scores too. In keeping with fairly recent FTC guidelines, your savings account should:
- Be FDIC-insured.
- Give you full access.
- Not charge you for extracting money.
Lawsuits and Debt Settlement
Keep in mind that banking institutions can sue an individual so as to collect a debt. There is more likelihood of being sued. Why is that? Because you quit paying your creditors.
If you owe $10,000 in credit card or unsecured loan debt, aren’t able to repay what you owe, and would rather eliminate your debt than have a good credit rating, credit card settlement might be worthwhile alternative to declaring yourself bankrupt.
Of the 12,114 residents of Dayton, 1,200 carry credit card debt in excess of $10,000.
What’s Your DTI?
If your debt-to-income ratio is more than 50%, then debt settlement or consolidation is needed. The optimal ratio? 36 percent. The average income in Dayton, KY, is $33,572 annually, or $2,798 each and every month. That means a typical Dayton resident ought to spend less than $1,035 in credit card, mortgage/rent, and loan payments, but many individuals are paying $1,427 or more each month. Not surprisingly, these people could use debt relief programs of some kind or another.
Dayton Debt Settlement vs Consolidation
A lot of people confuse credit card debt settlement and debt consolidation. These are totally distinct solutions. All of these are strategies for debt relief. Settlement separates itself by contributing to a real cut in the balance due. Some methods of relieving debt – for instance consolidation, management, and counseling – don’t do all that much damage to your FICO score over the years. However, these are extended remedies in which you repay every penny you owe. Check here to read more about debt consolidation in Dayton.
Whereas debt management plans have flat fees each month of $25 to 40, debt settlement fees are generally charged after each balance is paid back.
Nearly all settlement companies will charge you about 20% of the balance due – this is significant! This fee is usually spread out over a time period of 1-2 years.
- KY Credit Counseling Service? Contact us!