You don’t want to declare themselves bankrupt. A reputable Phenix City debt settlement service may be able to help. We can get you in contact with a debt settlement firm who can:
- Make a deal with your credit card companies.
- Get you a written agreement for debt forgiveness.
- Establish a strategy to pay off your credit balances in 2 to 4 years.
For legal reasons, Phenix City debt settlement agencies must give you the following specifics before you join, such as how much the costs will be for their assistance, how much time before they speak with your lenders, and what kinds of risk are involved. Be sure you find out whether your Phenix City, AL debt settlement service is reputable. See the following:
- Accreditations: Major qualifications include AFCC and IAPDA.
- Fees: Make sure that the rates you pay are realistic.
- Client Reviews: Try to find positive responses from former customers.
Debt settlement services offer a number of well-known advantages:
- Debt Reduced by 20-60%
- Huge Interest Savings
- Brief 24-36 Month Timeline
- Adjustable Repayment Plan
- Alternative to Declaring Bankruptcy
However, it has more negatives than some other options.
Are you ready to find out how much a debt settlement company in Phenix City, AL, can save you?
In order to negotiate a better settlement, your debt settlement firm will probably ask you to stop making payments to your credit card companies. Your money will enter a savings account. When you’ve got enough money to pay the negotiated amount, along with your debt settlement firm’s fee, your debts will be paid back. Meanwhile, your credit score will get worse and worse. Obviously, declaring yourself bankrupt would crush your credit ratings too. In keeping with relatively new FTC policies, your savings, or “special purpose” account should be under your complete control, regardless of the result of your credit card settlement, and it must be FDIC-insured.
Debt collectors have a limited period of time to file suit for debt. According to AL’s statute 6.2.37, this is 3 years.
In order to be qualified for a credit card settlement program in Phenix City, AL, you generally need:
- $10,000 in Debt
- $300 Each Month to Spend
If you have $10,000 of credit card debt, you are not alone. It’s estimated that 4,895 Phenix City residents owe at least $10,000 of credit card debt.
People with debt to income ratios of 50% or more are ideal prospects for debt relief of some kind, either settlement or consolidation. The perfect ratio? 30-36%. In Phenix City, people make $24,605 a year, or $2,050 each and every month, which means a typical resident of Phenix City should shell out approximately $738 in credit card, mortgage/rent, and loan payments, but many people in Phenix City owe $1,046 or more each month. Not surprisingly, these consumers could benefit from debt relief options, either credit card settlement or consolidation.
Settling your debt and managing it have just one thing in common: a consolidated payment per month. But the similarities stop there. These are all methods of relieving debt. Settlement differentiates itself by resulting in a true cut in the amount owed. You continue to repay your credit card issuers every month as part of credit counseling; thus your credit score is not impacted nearly as badly as it can be after a debt settlement. Having said that, debt management generally takes longer and over time you will pay back your debt in full. For more details, go there: debt consolidation in Phenix City.
Compensating Your Phenix City Debt Reduction Agency
As the most dramatic debt relief solution for residents of Phenix City, debt settlement is generally the most expensive.
As a rule, settlement firms will charge you approximately 20% of what you owe – which is a big chunk of change! Though you shouldn’t be forced to pay unless they actually negotiate with your creditors.
- A American Debt Consolidation, , 31904
- Consumer Credit Counseling, , 31904
- Consumer Credit Counseling, , 31904