Debt settlement firms in Mayfield, KY, will be able to negotiate your debts down to 40-80% of their original value.
At KY Debt Relief, we can get you in contact with a debt settlement agency that’s best for your needs.
Selecting a Debt Settlement Service: Mayfield, KY
Don’t entrust your debt settlement to some shady service. Any reputable debt negotiator will disclose some information prior to joining, such as how much their service costs, how much time their system will take, and how much risk is involved.
Make sure you determine if your Mayfield debt settlement consultant is reputable by verifying the following:
- Credentials: Premier associations include AFCC and IAPDA.
- Fee Structure: Make sure the fees they demand are sensible.
- Consumer Testimonials: Search for positive testimonials from past customers.
Downsides of Debt Settlement: Mayfield, KY
Debt settlement is the only solution that actually contributes to a reduction in the total amount owed. But it’s only a smart idea for certain customers.
Isn’t it time to reduce your debt?
So that they can get the best reduction in debt they can, your debt settlement firm will probably ask you to quit making payments to your creditors. Your funds will be deposited into a bank account. After you have enough money to pay the arranged settlement, the money you owe will be paid back. Meanwhile, your credit rating gets even worse. Certainly, declaring yourself bankrupt would crush your credit rating as well. In accordance with relatively recent FTC guidelines, this savings account must be yours to manage, regardless of the results of your debt settlement. It also has to be FDIC-insured.
Chances of a Lawsuit
It’s important to know that creditors do have the right to take legal action against a borrower to help them pursue a debt. There is an increased chance of going to court simply because you quit paying them on a monthly basis.
A local Mayfield debt settlement attorney can’t prevent such a scenario from happening. Sometimes they will represent you in court, a lot of times they can’t.
Suitable Debt Settlement Prospects: Mayfield (KY)
If you have $10,000 in credit card or unsecured loan debt, can’t repay what you owe, and would rather eliminate your debt than have favorable credit, debt settlement may be a good option.
There are 23,031 residents of Mayfield, and 2,281 have credit card debt in excess of $10,000.
Mayfield Debt to Income Ratio
Apart from your total debt, you should determine your debt to income ratio.
In simple terms, if you’re investing more than half of your earnings in credit cards, home loan, and loans, you should get in touch with a debt settlement expert in Mayfield, KY. Seeing as the average income in Mayfield is $2,336 every month, we’re talking about $1,168. You really want to aim for a ratio of just about 36% ($841 in Mayfield).
Whether you choose to settle or consolidate your debt, you should enjoy just one monthly payment, but the similarities end there. Debt settlement programs involve a decrease in the amount you owe, whereas consolidation or management does not.
You continue to pay off your creditors on a monthly basis as part of a debt management plan. So your credit score is not damaged nearly as dramatically as it can be after debt negotiations. Since of course, with credit card settlement you stop paying back your creditors. Having said that, credit counseling generally takes longer and in the end you’ll pay off 100% of what you owe.
Visit here to read more about credit counseling in Mayfield.
No debt relief firms in Mayfield should charge a fee in advance. Any qualified debt settlement firm in Mayfield, KY, will only charge a fee when each account is repaid. Most debt relief solutions usually involve flat monthly fees.
The vast majority of settlement firms charge you a percentage of the amount you want settled, often as much as 15%. This fee is usually spread out over a period of 12-24 months.
Debt Settlement Firms in Mayfield (KY)
- KY Credit Counseling Service? Contact us!