We connect you with prominent debt management and credit counseling companies to get you the debt relief you’re looking for.
Credit counseling was originally established for credit card issuers to recover money from consumers who were past due on their repayment demands before having to resort to debt collectors. What this means is many credit card counseling companies are affordable.
The average income in Andalusia, AL is $13,943 per annum. Any consumer who gets paid $1,162 monthly ought to carry debts of not more than $418 per month. This is a bit more than 1/3 of their before-tax income.
If you get paid $1,162 each month and are doling out at least $500 (43%), you are in trouble. You wouldn’t be on your own: many of Andalusia’s residents we work with have debt to income ratios of more than 50% ($581).
What if you’re paying out $581 monthly, but you only earn $1,162? In that case, your credit counselor might advise you to sign up for a debt management plan or DMP. Why should you look into a debt management program? Well, you might be able to take advantage of:
- Lesser Credit Card Rates
- Decreased Debt Collection Agency Phone Calls
- One Payment Amount
- Quicker Way out of Debt
You don’t have to talk with your creditors; the credit counselor will manage this aspect.
How to Avoid Credit Counseling Shams: Andalusia, AL
If you hook up with an honest company, credit counseling can really help. In point of fact, the Federal Trade Commission now demands it for those who want to file bankruptcy, but stay clear of any credit counselors that claim they’re able to:
- Put an end to all calls from collection agencies
- Remove bad things from your credit rating
- Reduce collateralled debts
- Erase debt through some federal government program
- Charge you in advance for their services
Keep in mind that being a nonprofit does not necessarily mean that a credit counseling agency is bonafide, and the other way around.
Credit counseling is intended to reduce the amount you’re spending, but how much is determined by a few different factors, such as:
- Your Total Debt
- How Many Creditors Agree to the DMP
Let a highly trained credit professional check out your finances and present you with a quote for how much you could save.
How much will a DMP cost you? Normally $25-$30 per month, plus an initial fee of about $90. If you can afford to pay back $2.50 of every $100 you owe month after month, you could pay back your debts in roughly 3.5 years, if your credit counseling consultant can freeze your APR. If he can’t, it’ll require substantially more time.
You might be interested in an overview of how much your monthly payments would be, given varying degrees of unpaid debt.
- $10,000 Debt: $210 to $250
- $15,000 Debt: $315 to $375
- $20,000 Debt: $420 to $500
- $25,000 Debt: $525 to $625
- $50,000 Debt: $1050 to $1250
- $70,000 Debt: $1470 to $1750
- $75,000 Debt: $1575 to $1875
- $100,000 Debt: $2100 to $2500
Bankruptcy Counseling: Andalusia, AL
Bankruptcy is becoming increasingly commonplace in the state of Alabama, don’t you think? It’s estimated that 127 of Andalusia’s 20,002 residents have found it necessary resort to bankruptcy.
Before filing bankruptcy, you must go through an accredited credit counseling program and get a certificate to be presented in court.
Consultations can be in person, by telephone, or over the internet, provided that you receive the required certificate
You shouldn’t assume every non profit credit counseling company is approved. For an approved list of approved Alabama credit counseling programs, follow this link. Or alternatively, you can speak with a qualified credit expert by completing this form.
Credit Counseling / Debt Counseling Agencies: Andalusia (AL)
- Alabama credit counseling firm? Email us!