Debt settlement is perhaps the most extreme debt relief solution available.
At Kentucky Debt Relief, we can find you a debt settlement consultant in Hazard, KY who can negotiate with your creditors to minimize what you owe. Are you ready to reduce your unsecured debt?
Choosing a Debt Settlement Company: Hazard, KY
By law, Hazard debt settlement agents have to provide you with some information before you get started:
- Fee Structure: charges are to be carefully explained.
- Timeline: they have to say when they’ll contact your creditors, not to mention the funds must be saved.
- Risks: they must inform you of the adverse repercussions for your credit rating
Always make sure that your Hazard, KY debt settlement firm is an honest one. Check how many years they have been running a business, how many clients they’ve handled, what their rate of success has been, what their prices are, and whether they’re licensed settle debt in the state of Kentucky.
If any debt settlement company in Hazard wants to charge fees before they settle your debt, run, as this is illegal!
Debt settlement programs have a few significant advantages:
- Substantial Debt Reduction
- Big Savings in Interest
- Short 3-5 Year Timeline
- Variable Repayment System
- Alternative to Bankruptcy
However, it’s only an intelligent option specific types of consumers.
Debt settlement – is it the right choice? Find out now!
In debt settlement, you up and cease making payments to the credit card issuers. As an alternative, you deposit money into a specialized checking account until you have enough money to pay the settlement negotiated by your Hazard debt settlement company. Regrettably, your credit rating gets lower and lower. Obviously, declaring bankruptcy would crush your credit rating too. In keeping with fairly new FTC policies, your savings account should be in your control, regardless of the outcome of your credit card settlement, and it has to be FDIC-insured.
KY Statute of Limitations for Debt
Card issuers have only so much time to take legal action for credit debt. In Kentucky, this is 5 or 15 years.
In order to be qualified for a credit card settlement program in Hazard, KY, you ordinarily have to have:
- $10,000 in Debt
- $300 Each Month to Spend
Of the 17,184 residents of Hazard, 1,702 are believed to carry credit card balances of more than $10,000.
Income vs Debt: Hazard, KY
If your debt-to-income ratio is 50% or more, then debt settlement or consolidation is probably a good idea.
In simple terms, if you are dedicating more than half of what earn in credit cards, rent/mortgage, and loans, you need to get in touch with a debt relief coach. Seeing as the average income in Hazard is $944 every month, this is $472. You really want to have a ratio of about 36%, or $340 for the average Hazard consumer.
Hazard Debt Settlement vs Credit Counseling
Debt settlement and consolidation have a very important factor in common: a consolidated payment amount, but the similarities stop there. Debt settlement involves a reduction in the amount you owe, whereas consolidation or management doesn’t.
When it comes to debt management, consolidation, and counseling, your payment amount is consolidated and continue to repay the card issuers until your debt is fully paid. This is easier on your FICO scores, but the only debt savings are derived from lowered rates of interest and late fees. Go here for additional information about debt consolidation in Hazard.
As the most radical debt relief solution available, debt settlement is generally the highest priced. The vast majority of settlement agencies will charge you roughly 20% of what you owe – that’s a whole lot! Though you won’t have to pay unless they actually get your debt reduced.
Hazard, KY, debt settlement attorneys are almost always more costly than a debt settlement consultant. The fee framework for debt settlement attorneys in Hazard, KY, is actually distinctive from that of specialized debt settlement agencies. That’s fine, but they are entitled to a big chunk of the debt they save you. Precisely how much? Often 30 percent. Obviously, this is more costly than a debt settlement service.
Because he or she is a lawyer does not mean they will be able to stop anyone from taking things to court. Unfortunately, plenty of people don’t realize this.
- KY Credit Counseling Service? Contact us!