A highly trained Richmond debt settlement firm works to reduce your debt for less than you ever thought possible. At Kentucky Debt Relief, we can match you to a debt settlement consultant in Richmond – right now – that’s best for your needs. There are absolutely no obligations, and it’s cost-free.
Finding a Debt Settlement Service in Richmond (KY)
You can’t settle your debts using some unethical service. Any legitimate debt negotiator will disclose a good bit of specifics before you join. They state their fees, their savings requirements, and the hazards of debt reduction. Be sure to find out if your Richmond debt settlement company is an honest one by researching the following:
- How long have they been in operation?
- How much debt have they settled?
- How much do they charge?
- How successful have they been?
- Are they licensed in Kentucky?
Should any debt settlement company in Richmond attempts to charge fees upfront, don’t join their services.
Richmond (KY) Debt Settlement Considerations
Often called debt negotiation in Richmond, debt settlement is the only debt solution that cuts back on your original debt, as opposed to just the interest rate. But it has more downsides than other solutions.
Let us put you in touch with a specialist who can talk to you about debt settlement in Richmond, KY.
So that they can get the lowest reduction in debt they can, your debt settlement firm will probably ask you to quit paying back your credit card companies. Your money will be put into a bank account. After you’ve got enough saved to pay the arranged settlement, plus the fee owed to your debt settlement firm, your debts will be paid back. Unfortunately, your FICO score goes down because you’re not paying your creditors. In addition, the debt collector calls probably won’t end. In accordance with 2010 FTC policies, this savings, or “special purpose” account has to be yours to manage, regardless of the outcome of your credit card settlement. It also should be FDIC-insured.
Debt Settlement and Litigation
You’ll want to understand that credit card companies are able to take legal action to help them go after a debt. There is a greater risk of being sued when it comes to debt settlement in Richmond, KY considering that you stop repaying your creditors.
As a resident of Richmond, you should be familiar with the Kentucky statute of limitations on debt:
- Statute of Limitations: 5 or 15 years
- State Law: 413.120 and 413.100
Suitable Debt Settlement Prospects in Richmond (KY)
Suitable Richmond debt settlement candidates have no less than $10K of debt, are thinking about bankruptcy, and can’t afford to make the minimum payments on their credit cards month after month.
If you fall into this category, you’re not alone – 4,745 Richmond residents are living with at least this much debt.
Lending institutions and credit professionals will consider your debt to income ratio, or DTI.
Let’s imagine you earn $1,349 every month, Richmond’s average income. If are spending under $486 for credit cards, loans, and rent, this is a healthy amount of debt of 36%). If you are having to spend $499-$567, which is 37-42%, you really need to cut down on how much you’re spending. If are having to spend $580 to $675 (43-50%), you’re heading towards financial collapse. If are spending more than $688, you are in financial jeopardy and really should speak with a debt consultant.
Settling your debts and consolidating them are two distinct methods. These are all methods of relieving debt. Debt reduction differentiates itself by bringing about a total cut in the amount owed.
You continue to pay off your lenders each month as part of a debt management plan. That means your credit rating is not harmed nearly as much as it will be during a debt settlement. Having said that, a debt management plan generally takes longer and eventually you will pay off every cent you owe. For more information, visit here: credit counseling in Richmond, KY.
Being the most radical debt relief option at your disposal, debt settlement is generally not cheap. As a rule, settlement agencies will charge you approximately 14-18 percent of what you owe – this is a lot! This service charge will normally be spread out over a time period of 1-2 years.
Debt Settlement Specialists: Richmond, KY
- Quality Credit Services, 200 Eastern Ave, #By-pass, 40475
- A American Debt Consolidation, , 40404