Can’t pay back those pesky credit card balances? Debt settlement is supposed to help you trim down your credit card debt dramatically.
At Kentucky Debt Relief, we can connect you with a debt settlement company in Williamsburg that’s right for you. Are you ready to get rid of debt?
Choosing a Debt Settlement Company in Williamsburg, KY
By law, Williamsburg debt settlement services have to give you the following specifics before getting started. They establish their prices, their timeline, and the hazards you will be up against. Make sure your Williamsburg, KY debt settlement firm is legitimate. Check the following:
- How many years have they been in operation?
- How many cases have they managed?
- How much are their fees?
- How successful have they been?
- Are they registered in the state of KY?
Keep in mind: no Williamsburg, KY debt settlement companies are allowed to charge advance fees!
Also called debt negotiations, debt settlement is the only option that actually contributes to a decrease in the total amount owed. But it’s an intense series of negotiations that requires a good bit of risk.
During debt settlement, you just stop paying the credit card companies. Instead, you set aside funds in a special savings account until you’ve got a sufficient amount to pay the amount arranged by your Williamsburg debt settlement firm. Unfortunately, your FICO rating gets worse because you aren’t paying your creditors. And also, the collection calls may not taper off. In keeping with 2010 FTC guidelines, your savings account has to:
- Be with an FDIC-insured establishment.
- Give you unrestricted access.
- Not penalize you for extracting money.
Statute of Limitations for Credit Card Debt in Kentucky
As a resident of Williamsburg, this is what you have to know in relation to the Kentucky statute of limitations on debt:
- Statute of Limitations: 5 or 15 years
- State Law: 413.120 and 413.138
- Further Information: www.lrc.ky.gov/KRS/413-00/120.PDF
If you have $10,000 in debt, can’t make your payments, and would rather eliminate your debt than have a favorable credit record, credit card debt settlement might be sensible alternative to filing bankruptcy.
There are 18,152 people in Williamsburg, and it’s estimated that 1,798 owe credit card debt of at least $10,000.
What’s Your Monthly Debt Load?
If your debt-to-income ratio is more than 50%, then debt settlement or consolidation is probably a good idea.
Simply speaking, if you’re investing over 50% of your wages to credit cards, rent, and car loans, you must talk with a debt relief coach. Seeing as the average income in Williamsburg is $1,731 each month, this is just $866. You really want to aim for a ratio that’s closer to 36 percent ($623 in Williamsburg).
Consolidating vs Negotiating Your Debt in Williamsburg (KY)
Debt settlement and management have a very important factor in common: a single monthly payment, but the commonalities end there. Debt settlement programs involve a reduction in your debt, whereas consolidation or management won’t. With debt management, consolidation, and counseling, your monthly payment is combined and continue paying off the credit card companies until your debts are paid off. There’s no question that this approach is is more favorable for your FICO ratings, but reduced interest rates and fees are the only form of savings you’ll enjoy. Visit here to find out more about credit counseling in Williamsburg.
What Does Debt Settlement Cost?
While debt management programs have flat monthly fees of $25 to 40, debt settlement charges are usually applied once each balance is paid back.
The vast majority of settlement agencies charge you a percentage of the debt you want reduced, often around 15 percent. This service charge will typically be paid over 12-24 months.
Some lawyers in Williamsburg, KY, may well provide debt settlement services. Lots of law firms will ask you for a retainer, usually 5% of your debt, together with a monthly charge. That sounds fine, but they get paid a hefty chunk of the debt they save you. The proportion varies, but it’s typically approximately 30 percent. This is typically more expensive than the percentage charged by a debt settlement company.
Debt Settlement Businesses: Williamsburg, KY
- KY Credit Counseling Service? Contact us!