Can’t pay off those pesky credit card balances? Debt settlement is supposed to help you lower your debts by a substantial margin.
At Kentucky Debt Relief, we can put you in contact with a debt settlement agency – today – that’s best-suited for your needs.
For legal reasons, Keavy debt settlement agencies must disclose the following specifics prior to signing on. They spell out their fees, when they plan to get started, and the hazards of debt reduction. Make sure your Keavy, KY debt settlement firm is legit. Check the following:
- Qualifications: Top accreditations include TASC and IAPDA.
- Rates: Be sure the fees you pay are sensible.
- User Feedback: Try to find positive reviews from past customers.
No Keavy, KY debt settlement agency is supposed to charge upfront fees!
Debt Settlement Disadvantages: Keavy, KY
Debt settlement programs provide a number of well-known benefits:
- Debt Reduced by 20-60%
- Large Interest Savings
- Brief 2-3 Year Schedule
- Convenient Repayment Scheme
- Substitute for Declaring Bankruptcy
However, it is only the right choice for specific customers.
In debt settlement, you completely quit making payments to your creditors. Instead, you put aside funds in a specific savings account until you’ve got enough money to pay the amount worked out by your Keavy debt settlement firm. Unfortunately, your FICO rating gets even worse. Naturally, declaring yourself bankrupt would wreck your credit ratings as well. In keeping with fairly new FTC policies, this savings account should:
- Be at an FDIC-insured institution.
- Give you unfettered access.
- Not penalize you for pulling out funds.
Chances of a Lawsuit
You should understand that credit card companies do have the right to take legal action against an individual to help them pursue a debt. There is an increased potential for a lawsuit. Why? Mainly because you stop repaying your creditors.
A a debt settlement attorney in Keavy, KY, can’t stop litigation from any creditor who is going after your debt.
Statute of Limitations for Debt: Kentucky
Credit card companies have only so much time to file suit for debt. According to KY statute 413.120 and 413.114, this is 5 or 15 years.
Debt settlement might be worthwhile if you would reply in the affirmative to the following questions:
- Are you considering going bankrupt?
- Do you owe $10,000 or more in debt?
- Can you accept unfavorable credit ratings?
If you are one of these individuals, don’t fret – 2,781 of Keavy’s 28,074 residents are carrying at least this much debt.
What’s Your Monthly Debt Load?
If you’ve got a debt-to-income (DTI) of more than 50%, then debt settlement or consolidation is highly recommended.
Say you make $2,135 every month, the Keavy average. If are shelling out no more than $769 on credit cards, loans, and rent, this is an optimal level of debt of 36%). If you are having to spend $790 to $897, which is 37-42%, you need to lower your expenses. If are shelling out $918 to $1,068, which is 43-50%, you are heading towards financial collapse. If are forking over more than $1,089, you are in severe debt and should reach out to a debt specialist.
Consolidating vs Negotiating Your Debt: Keavy, KY
Credit card settlement and consolidation each have their own advantages and disadvantages. Most debt management plans result in lower interest levels for your credit cards, but zero reduction of the balance due. These methods of relieving debt – debt consolidation, management, counseling – have much less of a negative effect on your FICO scores over time. However, they are extended alternatives that require you to repay all of what you owe.
Go here for additional information about credit counseling in Keavy.
Given that it’s the most radical debt relief solution for residents of Keavy, debt settlement is generally the highest priced.
Generally, settlement agencies will charge you approximately 14-18 percent of your debt – this is significant! This service charge will often be paid over a time period of 1-2 years.
- KY Credit Counseling Service? Contact us!