Debt settlement firms in Morehead, KY, may be able to help you significantly reduce your debts. At Kentucky Debt Relief, we can put you in touch with a debt settlement agency in Morehead who can negotiate with your credit card companies to lower your debt. Are you ready to decrease your unsecured debt?
You shouldn’t trust your debt settlement to some shady firm. Virtually any good debt settlement company in Morehead, KY, will divulge certain specifics before signing up:
- Fees: charges have to be carefully spelled out.
- Schedule: they must say when they’re going to get in touch with your creditors, along with how much money must be saved.
- Risks: they have to tell you about the adverse repercussions to your credit that come as a result of choosing not to pay your creditors
Be sure to determine whether your Morehead debt settlement firm is legit by checking the following:
- How long have they been in operation?
- How many negotiations have they handled?
- How much do they charge?
- What is their record with the BBB?
- What is their rate of success?
- Are they licensed in Kentucky?
Though debt settlement can result in drastic debt reduction, it requires serious thought.
As you probably know, debt settlement does have its disadvantages:
- Bad for your credit scores.
- Debt never completely paid back.
- Debt keeps building while settlement is being negotiated.
- Collections calls probably won’t stop.
- Debt that you don’t pay can be taxed.
As a resident of Morehead, here’s what you need to know in relation to the Kentucky statute of limitations for debt:
- Statute of Limitations: 5 or 15 years
- State Law: 413.120 and 413.132
Minimum Requirements for Debt Negotiation: Morehead, KY
For you to be eligible for a a credit card debt settlement program in Morehead, KY, you ordinarily need to have:
- $10,000 in Debt
- $300 a Month For Payments
If you are one of these individuals, don’t fret – 2,000 of Morehead’s 20,189 residents owe at least $10,000 of credit card debt.
Morehead Debt to Income Ratio
If you have a debt-to-income (DTI) ratio of 50% or more, then debt settlement or consolidation is highly recommended. The ideal ratio is 36%. The average income in Morehead, KY, is $28,691 annually, or $2,391 every month. That means the average resident of Morehead ought to spend approximately $885 in credit card, mortgage/rent, and auto/student loan repayments, but a lot of us are obligated to pay over $1,196 every month. Not surprisingly, these individuals should explore debt relief of some type or another.
Consolidating vs Negotiating Your Debt in Morehead, KY
Whether you choose to settle or consolidate your credit balances, you should have just one single payment per month, but the commonalities terminate there. Debt settlement results in a decrease in what you owe, while consolidation or management won’t.
These forms of debt relief – for instance debt consolidation, management, counseling – are much better for your FICO score over the long haul, but these are protracted alternatives in which you pay off all of your debt.
Click here for additional information about credit counseling in Morehead, KY.
Compensating Your Morehead, KY Debt Settlement Firm
Whereas debt management programs have flat monthly fees, debt settlement fees are usually assessed after each account is settled.
The majority of settlement agencies will charge you around 15% of the balance due – this is a whole lot! Essentially they are forbidden legally from charging you until an account has been repaid.
Debt Settlement Firms: Morehead, KY
- Credit Cleaners, 255 Old Flemingsburg Rd, 40351
- Wise Choice Credit Counseling, 1446 E Main St, 40351