Kentucky Debt Settlement (KY)

KY Debt Relief

Debt Settlement Kentucky

Are you hoping to explore alternatives to bankruptcy by paying off at least part of your balance? Enlisting the assistance of a solid Kentucky debt settlement firm might be your first step out of debt.

Although debt settlement may result in substantial decreases in your debts, it involves putting your money into a checking account on a monthly basis in lieu of paying back your credit card balances. Then you give them the agreed amount. Obviously, this will hurt your credit rating.

Of the 4,339,367 people who live in Kentucky, 429,858 need help with debt. We can help you find the KY debt relief option that will put you on the path to financial freedom.

Choosing a Debt Settlement Service in KY

Don’t entrust your debt settlement to some underhanded company. Any legitimate debt negotiator will provide you with the following specifics prior to signing up:

  • Fees: all fees must be fully described.
  • Duration: they have to tell you when they’re going to contact your creditors, and how much money you must have saved.
  • Dangers: they must explain the negative implications that come as a result of deciding not to pay your creditors

Be sure you find out whether your Kentucky debt settlement company is an honest one. Check the following:

  1. How long have they been operational?
  2. How much debt have they settled?
  3. How much are their fees?
  4. What is their BBB rating?
  5. What is their success rate?
  6. Are they licensed to negotiate debts in Kentucky?

No Kentucky debt settlement service should charge fees in advance!

Shortcomings of Debt Settlement

In a debt settlement, you simply stop paying your creditors. As an alternative, you place money into a special savings account until you have a sufficient amount to pay the settlement worked out by your Kentucky debt settlement company. Regrettably, your FICO rating declines because you’re not making your payments. Furthermore, the collection calls may not end. According to relatively recent FTC policies, your savings account must:

  • Be FDIC-insured.
  • Give you full access.
  • Not charge you for extracting money.

Minimum Requirements for Debt Settlement in KY

Ideal KY debt settlement prospects are carrying at least $10,000 of debt, are facing filing for bankrupty, and can no longer afford to make the minimum payments on their credit or store cards on a monthly basis.

If you are one of these individuals, you are not alone. We estimate that 429,858 of Kentucky’s 4,339,367 residents are living under this much debt.

People who have debt to income ratios of 50% or higher are excellent candidates for debt relief, either settlement or consolidation.

In simple terms, if you are dedicating more than 50% of your wages to credit cards, rent, and/or loans, you’ll want to consult a debt settlement expert in KY. Considering that the average income in Kentucky is $3,040 per month, this is $1,520. You really want to try and have a ratio of around 36 percent ($1,094 in KY).

Settling your debt and consolidating it are two separate options. Debt settlement leads to a decrease in what you owe, while consolidation or management does not. You continue to pay back your creditors monthly under a debt management plan, which means your credit score isn’t damaged nearly as dramatically as it is after debt negotiations, during which you stop repaying your creditors. On the other hand, consumer credit counseling generally takes longer and in time you’re going to pay back your debt in full.

Check here to learn more about credit counseling in Kentucky.

Debt Settlement Pricing

Given that it’s the most drastic debt relief solution available, debt settlement is generally the most expensive. Nearly all settlement agencies will charge you approximately 14-18 percent of your debt – that’s a whole lot! This fee is normally paid over a period of 12-24 months.

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