A seasoned Mount Sterling debt negotiator works to settle your credit card debt for less than what you owe.
Our objective is to put you in contact with a debt settlement agency in Mount Sterling that will:
- Bargain with your creditors.
- Receive a written contract for debt reduction.
- Develop a plan to repay your creditors in 24-48 months.
Choosing a Debt Settlement Firm in Mount Sterling, KY
Legally, Mount Sterling debt settlement agents must disclose certain information before you get started:
- Pricing: all fees are to be completely described.
- Timeline: they must tell you when they will reach out to the credit card companies, not to mention how much money must be saved.
- Risks: they must inform you of the detrimental implications for your credit scores
Be certain that your Mount Sterling, KY debt settlement consultant is trustworthy. Check the following:
- Accreditation: Premier accreditations include AFCC and IAPDA.
- Costs: Ensure that the fees they charge are affordable.
- Client Ratings: Try to find favorable evaluations from previous consumers.
Mount Sterling (KY) Debt Settlement Considerations
Debt settlement is the only debt relief method that reduces the principal. But it requires serious consideration.
Settling your debts like this does have a number of downsides. To start, debt settlement can be really bad for your credit score. After all, your debt will never be totally paid back. On top of that, your collection calls might not be reduced substantially, as they would with some other debt relief strategies.
In Kentucky, credit card companies have 5 or 15 years to bring you to court for credit debt that’s owed them.
To be a candidate for a credit card settlement program in Mount Sterling, KY, you typically need to have:
- $10,000 in Debt
- $300 Per Month to Spend
There are 17,665 people in Mount Sterling, and it’s estimated that 1,750 owe credit card balances in excess of $10,000.
Mount Sterling Debt to Income Ratios
Together with how much you owe in total, you should determine your debt to income ratio on a monthly basis.
Basically, if you are devoting more than half of your income in credit cards, rent, and auto loans, you need to contact a debt settlement specialist in Mount Sterling, KY. Given that the average income in Mount Sterling is $2,771 per month, this is $1,386. You really should have a ratio of around 36%, or $998 for the average Mount Sterling borrower.
A lot of people mistake credit card debt settlement and consolidation, management, or counseling. These are entirely different. All of these are methods of eliminating debt. Settlement stands alone by leading to a proper cut in the amount owed.
These methods of relieving debt – debt consolidation, management, counseling – have much less of an effect on your credit score over the years. However, they are long term solutions that require repayment of all of your debt. Read this article for more information about debt consolidation in Mount Sterling, KY.
Fee Structures for Debt Settlement
While debt management programs have flat fees each month, debt settlement fees are generally assessed once each credit card is repaid.
The vast majority of settlement firms will charge you approximately 14-18 percent of the balance due – that’s a big chunk of change! This fee is generally paid over a period of 1-2 years.
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