Is severe debt adversely affecting your credit scores? If so, a trusted Anniston credit counseling agency could help. Here at Debt Relief Alabama, we enable you to get in touch with a credit counselor in Anniston, AL.
Now, a great number of credit counseling organizations in Anniston are funded at least partially by contributions from your creditors. This means a lot of credit card counseling services are inexpensive. We estimate that 2,510 of the 68,048 inhabitants of Anniston are in need of credit counseling.
Debt to Income Ratio in Anniston, AL
Anyone reviewing a credit application wants to know how much you earn compared to how much you owe. This is the most crucial thing. Figuring this out is simple. Here are a few stats based on an income of $1,711 every month, the Anniston average:
- $616 (36%): Optimal
- $633 to $719 (37-42%): Okay
- $736 to $856 (43-50%): Too High
- $856 plus (50%): Acute
Debt Management in Anniston, AL
What if you’re spending $856 a month, but you only earn $1,711? Then your credit counseling consultant may want you to enroll in a debt management program or DMP. A DMP is a way of consolidating debt, given that the money you owe each month will be consolidated into just one payment. However, there is no loan necessary. This is different from various other types of debt consolidation in Anniston, AL that use home equity loans to pay down your credit card balances.
In essence, your credit counselor will handle your creditors personally.
Credit counseling should not have a permanent negative influence on your credit score, but loan companies may be hesitant to approve you for new home and car loans if you are participating in a debt management plan to get free of debt.
Picking a Credit Counseling Service: Anniston (AL)
Provided that you are dealing with an established firm, credit counseling can be truly beneficial. For that matter, the FTC now demands it for individuals who want to file bankruptcy in Alabama and across the country. All the same, keep away from any credit counseling organizations that say that they are able to:
- End all debt collection calls
- Delete damaging stuff from your credit history
- Ensure the elimination of unsecured debt
- Prevent credit card issuers from taking legal action against you
- Impose a fee ahead of time for their products and services
For more information, check out this FTC post on the subject.
How Much Could Debt Management Help Save?
Although credit counseling won’t result in any reduction of debt, it can save you a lot through decreased interest and far fewer penalty charges.
To determine exactly how much you could save, talk with a good Anniston credit counselor – today!
Credit Counseling Costs: Anniston, AL
The counseling component of these services should be complimentary, however some counselors ask for voluntary donations. Debt management programs are very reasonably priced. They will cost you less than $40 per month, and the price is factored into your monthly payment. Many programs will have you pay off 2.5% of your total debt a month.
Here is a summary of how much you may be required to pay, based on different levels of financial debt.
- $20,000 Debt: $420 to $500
- $25,000 Debt: $525 to $625
- $35,000 Debt: $735 to $875
- $50,000 Debt: $1050 to $1250
- $70,000 Debt: $1470 to $1750
- $90,000 Debt: $1890 to $2250
Bankruptcy Counseling: Anniston (AL)
We estimate that 433 of Anniston’s 68,048 consumers have been forced file for bankruptcy. Credit counseling is an FTC requirement prior to declaring bankruptcy.
You need not work with one of the credit counseling agencies in Anniston, AL for this. Bankruptcy credit counseling programs for Anniston residents are offered online and on the telephone.
Not every not for profit credit counseling service in Anniston, AL, can give you this certificate. For an approved list of approved pre-bankruptcy credit counseling services for Anniston residents, simply click here, and you can converse with a seasoned debt advisor by completing this form.
Consumer Credit Counseling Services: Anniston, AL
In Anniston CCCS, also referred to as Consumer Credit Counseling Service, may provide reasonably priced credit counseling for local families. In Anniston, Alabama, a Consumer Credit Counseling Service will generally be a community not for profit that is a part of the National Foundation for Credit Counseling. Quite often a CCCS agency will provide:
- Post/Pre Bankruptcy Counseling
- Housing Assistance
- Credit Score Reviews
- Debt Management Plans
Bear in mind that non profit does not always mean zero cost.
To locate the CCCS agency nearest to Anniston, AL, reference the list of agencies this site offers or take a look at www.debtadvice.org.
Debt and Credit Counseling Agencies in Anniston, AL
- Labudde & Russell, 1212 Wilmer Ave, 36201