Just can’t pay back your credit card debt? Debt settlement may be able to help you reduce your unsecured debt by a substantial margin. At Debt Relief Alabama, we can connect you with a debt settlement firm – this minute – given what you owe and the city you live in (Athens), coupled with a few other factors.
Of the 42,320 residents of Athens, we estimate that 4,192 are in need of debt relief. Are you one of them?
By law, Athens debt settlement solutions have to provide you with the following information prior to signing on. They spell out their costs, their starting dates, and the risks of debt reduction.
Be sure to find out if your Athens, AL debt settlement firm is an honest one. Research the following:
- Accreditation: Major qualifications include AFCC (American Fair Credit Council) and IAPDA (International Association of Professional Debt Arbitrators).
- Costs: Always make sure the rates they demand are appropriate.
- Customer Ratings: Try to find favorable reviews from former consumers.
No Athens, AL debt negotiation company is supposed to charge fees upfront!
Athens (AL) Debt Negotiations
Debt settlement solutions offer some significant advantages:
- Debt Reduced by 20-60%
- Substantial Savings in Interest
- Quick 2-3 Year Schedule
- Flexible Repayment Plan
- Alternative to Declaring Bankruptcy
However, it has more negatives than other options.
So as to negotiate a better settlement, your debt settlement company will probably ask you to quit repaying your credit card companies. Your funds will go into a checking account. Once you’ve got sufficient funds to pay the negotiated settlement, your debt will be repaid. Regrettably, your credit score gets worse because you aren’t paying your creditors. Needless to say, declaring yourself bankrupt would kill your credit ratings as well. In keeping with relatively new FTC regulations, this savings, or “special purpose” account must be in your control, whatever the outcome of your credit card negotiations. It also should be FDIC-insured.
Minimum Criteria for Debt Negotiation in Athens, AL
Debt settlement might be a good option if you would reply in the affirmative to these questions:
- Are you looking into declaring bankruptcy?
- Do you have $10,000 or more in debt?
- Are you comfortable with having poor credit if it helps you reduce your debt load?
If you are one of these individuals, don’t fret. We estimate that 4,192 Athens residents are trying to repay at least $10,000 of credit card debt.
If your debt-to-income ratio is 50% or more, then debt settlement or consolidation is worth exploring.
Let’s suppose you make $2,412 on a monthly basis, which is the Athens average. If have to pay under $868 on credit cards, loans, and rent, you’ve got an ideal level of debt of 36%). If you are having to pay $892 to $1,013, which is 37-42%, you really should scale back your spending. If are having to spend $1,037 to $1,206, which is 43-50%, you are on the brink of serious debt issues, and if are spending more than $1,230, you are in financial jeopardy and ought to speak with a debt expert.
Managing vs Negotiating Your Debt in Athens, AL
Settling your debts and consolidating them are two separate methods. Almost all debt management plans provide more affordable rates on your credit cards. However, there is no forgiveness of pre-existing debt is involved.
Other forms of debt relief – for example debt consolidation, management, and counseling – are much better for your FICO scores over time, but these are protracted methods in which you repay all of your debt. For additional information, go here: credit counseling in Athens, AL.
Debt Settlement Fees: Athens, AL
No debt settlement services in Athens are permitted to charge a fee at signup. Any licensed debt settlement service in Athens, AL, will only charge you when a balance is paid back. Other debt relief options ordinarily entail regular payments.
Nearly all settlement firms will charge you about 15% of the debt owed – this is a lot! This service charge is generally assessed over a time period of 12-24 months.
- A American Debt Consolidation, 201 W Green St, 35611