Would you like to become debt free and prevent bankruptcy? Seeking the help of a reputable Elizabethtown debt settlement firm may be worth looking into.
At Kentucky Debt Relief, our mission is to find you a debt settlement agency – right now – who will:
- Negotiate with your creditors.
- Request an official settlement for debt forgiveness.
- Establish a program to pay off what you owe in 2 to 4 years.
Legally, Elizabethtown debt settlement specialists must disclose the following details before signing up, for instance how much the costs will be for their services, how long their service will take, and what kinds of risk can be expected. Make sure you find out whether or not your Elizabethtown, KY debt settlement specialist is legitimate. Research the following:
- How many years have they been in business?
- How many clients have they handled?
- How much are their fees?
- What is their rating with the BBB?
- How effective have they been?
- Are they certified to conduct business in Kentucky?
Debt Settlement Downsides in Elizabethtown (KY)
Often known as debt negotiation, debt settlement is the only debt relief method that actually results in a decrease in the original amount owed. But it dramatically impacts your FICO scores. For that reason, you need to be completely confident that it is the proper solution for you and your family.
Of the 38,367 people who live in Elizabethtown, approximately 3,801 have $10,000 or more in debt. Debt settlement could possibly reduce your debt from $10,000 to $4000-$8000.
Before you move forward with debt settlement, there are certain things you have to know:
- Wrecks your credit ratings.
- Debt not totally cleared.
- Debt continues to mount while settlement is being discussed.
- Calls from collection agencies probably won’t be reduced.
- Debt that’s settled is taxable.
Risk of Lawsuits
Don’t forget, credit card providers do have the right to sue an individual in order to go after a debt. The risk of being sued is higher considering that you quit repaying them.
As a resident of Elizabethtown, here’s what you should know as regards the statute of limitations for debt:
- Statute of Limitations: 5 or 15 years
- State Law: 413.120 and 413.106
- Details: www.lrc.ky.gov/KRS/413-00/120.PDF
Debt settlement may be a good idea if you would answer in the affirmative to these questions:
- Are you contemplating bankruptcy?
- Do you owe $10,000 or more in debt?
- Are you okay with having unfavorable credit if it means you can reduce your debt load?
There are 38,367 people in Elizabethtown, and we estimate that 3,801 owe credit card debts in excess of $10,000.
Income vs Debt: Elizabethtown, KY
Consumers with debt to income ratios of 50% or higher are ideal candidates for debt relief of some kind, whether it’s settlement or consolidation.
Basically, if you are investing over 50 percent of your earnings to credit cards, rent, and/or vehicle loans, you need to speak with a debt settlement professional in Elizabethtown, KY. Considering that the average income in Elizabethtown is $1,644 per month, this is $822. You should really aim for a ratio of about 36% ($592 in Elizabethtown).
Elizabethtown Debt Settlement vs Consolidation
Both debt settlement and management benefit from a consolidated payment per month. However, the commonalities terminate there. A lot of debt management plans result in reduced rates for your credit cards and/or payday loans. However, there is no reduction in active debt is involved.
You continue to pay off your credit card companies every month under credit counseling, so your credit rating is not damaged nearly as drastically as it can be during debt negotiations. Then again, a debt management plan generally takes longer and ultimately you will pay every cent you owe.
Visit here to learn more about debt consolidation in Elizabethtown, KY.
How Debt Settlement Firms Are Paid
As the most dramatic debt relief solution at your disposal, debt settlement is generally the highest priced.
The majority of settlement companies will charge you approximately 14-18 percent of the debt owed – which is a whole lot! Though you shouldn’t have to pay unless they actually settle your debt.
Elizabethtown, KY Debt Settlement Agencies
- Consumer Credit Counseling Service Of Louisville, 617 N Mulberry St, 42701
- DBG GOOD Services, 2009 Pleasant View Dr, 42701