A debt settlement firm in Monticello, KY, should be able to negotiate your debts down 20-60% from their original amount. We can put you in contact with a debt settlement consultant that’s right for you.
According to the FTC, Monticello debt settlement firms must give you a good bit of information before you get started. They clarify their fees, when they plan to get started, and the hazards you will be facing.
Make sure you find out if your Monticello, KY debt settlement company is an honest one by checking how many years they’ve been running a business, how much debt they’ve negotiated, what their rate of success is, how much they charge, and whether they are certified to do business in the state of Kentucky.
Debt settlement services offer up a number of big advantages:
- Debt Reduced by 20-60%
- Substantial Interest Savings
- Quick 24-36 Month Schedule
- Convenient Repayment Scheme
- Substitute for Bankruptcy
However, considering the unfavorable impact it has on your credit rating, it is considered a last resort.
About 1,838 of Monticello’s 18,553 residents owe at least $10,000 on their credit cards. We can help you find the debt relief solution that will put you on the path to financial freedom.
The services supplied by debt settlement firms in Monticello, KY, do have their shortcomings. For instance, debt negotiation can be really bad for your credit score, as your creditors will not be paid in full. Given that debt consolidation entails trying to repay your creditors on a monthly basis, debt collection calls will usually decrease. As any Monticello debt settlement professional will agree, this is often not the case when it comes to debt settlement. It may take up to 180 days for anything to happen. While these negotiations are taking place, your credit card debts will continue to mount.
It’s important to be aware that credit card companies do have the right to sue a borrower in order to collect a debt. There is more potential for litigation when it comes to debt settlement in Monticello, KY. Why? Mainly because you quit paying your creditors on a monthly basis.
Credit card providers have a limited period of time to file a suit for unsecured debt. According to KY statute 413.120 and 413.136, this is 5 or 15 years.
Minimum Requirements for Debt Settlement in Monticello, KY
Suitable Monticello debt settlement prospects are carrying at least $10K of debt, are thinking about bankruptcy, and can’t afford to make the minimums on their credit lines month after month.
There are 18,553 residents of Monticello, and we estimate that 1,838 carry credit card debt of at least $10,000.
Besides how much you owe in total, you need to calculate your ratio of debt to income on a monthly basis.
Say you make $1,738 on a monthly basis, Monticello’s average income. If are spending less than $626 on credit cards, loans, and mortgage/rent, this is an optimal debt load (36%). If you spend $643 to $730 (37-42%), you need to cut down on how much you’re spending. If are having to spend $747 to $869, which is 43-50%, you’re about to experience economic breakdown. If you spend more than $886, you are hurting badly and ought to request professional debt relief.
Monticello Debt Negotiation vs Credit Counseling
A lot of people mix up credit card debt settlement and credit counseling, debt management, or debt consolidation. They are completely different. Debt settlement involves a reduction in the amount you owe, and consolidation or management doesn’t.
These forms of debt relief – debt consolidation, management, and counseling – cause nearly as many problems for your FICO ratings ultimately. However, they are long-term remedies in which you pay every penny you owe.
Check here to learn more about debt consolidation in Monticello.
As the most extreme debt relief option available, debt settlement is generally not cheap.
Most settlement agencies will charge you around 20% of your debt – this is a lot! This service charge will most likely be assessed over 1-2 years.
Monticello, KY Debt Settlement Businesses
- KY Credit Counseling Service? Contact us!