Would you like to become debt free while staying away from bankruptcy? Enlisting the services of a good Prestonsburg debt settlement company could be worth looking into. Our mission is to get you in touch with a debt settlement company in Prestonsburg, KY considering the amount you owe and the city you live in, coupled with a number of additional factors. Isn’t it time to lower your credit card debt?
Around 1,223 of Prestonsburg’s 12,343 residents are in need of debt relief. You’re not alone. Get relief from debt today.
Finding a Debt Settlement Service: Prestonsburg (KY)
You can’t settle your debts using some shady service. Virtually any reputable debt negotiator will disclose the following information before signing up, including how much their services costs, how much time until they speak with your creditors, and how much risk is involved.
Be sure you find out if your Prestonsburg debt settlement service is reputable by finding out the following:
- Certification: Popular accreditations include TASC and IAPDA.
- Rates: Confirm that the fees you pay are affordable.
- User Testimonials: Try to find favorable testimonials from prior clients.
Although debt settlement may result in dramatic reduction in your debts, it has more downsides than some other options.
Of the 12,343 residents of Prestonsburg, 1,223 need help with debt. Debt settlement could potentially reduce your debt to $4000-$8000.
So that they can leverage a better settlement, your debt settlement company will probably recommend that you stop making payments to your credit card companies. Your money will be deposited into a savings account. When there is enough money to pay the arranged amount, the money you owe will be paid off. Unfortunately, your credit rating will get even worse. Keep in mind, filing for bankruptcy would crush your credit rating as well. In accordance with relatively new FTC policies, this savings account has to be in your control, whatever the outcome of your credit card negotiations, and it should be FDIC-insured.
KY Statute of Limitations as Regards Debt
Credit card companies have a limited period of time to file a suit for unpaid unsecured debt. In Kentucky, this is 5 or 15 years.
To be a candidate for a debt settlement program in Prestonsburg, KY, you usually need:
- $10,000 in Credit Debt
- $300 Each Month For Payments
There are 12,343 folks who live in Prestonsburg, and 1,223 have credit card debt of at least $10,000.
Calculating Your Debt-to-Income Ratio
Finance companies and credit consultants will want to look at your debt to income ratio (DTI).
To put it succinctly, if you are dedicating more than half of your earnings in credit cards, home loan, and/or automobile or student loans, you should contact a debt settlement professional in Prestonsburg, KY. Considering that the average income in Prestonsburg is $1,955 per month, this is $978. You really want to aim for a ratio that’s nearer to 36%. In Prestonsburg, this is $704, based on the average income.
Prestonsburg Debt Settlement vs Credit Counseling
A lot of people confuse credit card settlement and credit counseling, debt management, or debt consolidation. They are entirely distinct solutions. Debt settlement leads to a decrease in the amount you owe, and consolidation or management does not.
With debt management, consolidation, and counseling, your monthly payment is consolidated. However, continue to pay off the card companies until your debts are paid in full. There’s no doubt that this approach is better for your credit scores. However, the only debt savings result from reduced interest levels and penalties. For more details, go there: credit counseling in Prestonsburg.
Compensating Your Prestonsburg Debt Relief Company
No debt relief companies in Prestonsburg are allowed to make you pay at signup. Any legit debt settlement agency in Prestonsburg, KY, will only bill you when each account is paid off. Other debt relief solutions generally entail flat monthly fees. The majority of settlement companies charge you a percentage of the balance you want settled, often as much as 15%. This service charge is usually spread out over a time period of 1-2 years.
Prestonsburg, KY Debt Settlement Attorneys
A few lawyers in Prestonsburg, KY, may well provide debt negotiation for their clients. Many law firms will ask you for some type of retainer, typically 5% of what you owe, along with a bill every month. The concern is that they will also take a big chunk of debt reduction amount. . The percentage? Usually 30 percent. Typically, this is more expensive than the flat rate charged by a debt settlement agency.
Debt Settlement Firms: Prestonsburg (KY)
- KY Credit Counseling Service? Contact us!