Negotiating what you owe is best entrusted to an established Tuscaloosa debt settlement company. Let us help you find a debt settlement agency that can negotiate with your creditors to reduce your credit balances. Are you ready to get out of credit card debt?
Locating a Debt Settlement Company in Tuscaloosa (AL)
Don’t trust some underhanded agency. Virtually any good debt negotiator will provide you with the following specifics prior to registering, for instance how much their system costs, how long until they get hold of your credit card companies, and how much risk is involved. Make sure your Tuscaloosa debt settlement consultant is legit. Verify the following:
- How many years have they been in business?
- How much debt have they settled?
- How much do they charge?
- What is their rate of success?
- Are they licensed in Alabama?
Although debt settlement can bring about serious debt elimination, it means depositing funds into a savings account each and every month as opposed to paying off your credit card balances. When you have enough money saved, you send them the negotiated sum. Needless to say, settling your debts in this way is not good for your credit scores.
Approximately 9,775 of Tuscaloosa’s 98,675 residents could benefit from debt relief. Are you one of them?
Negotiating your debts in this way has a few downsides. To start with, your credit card issuers can decline to negotiate. Also, debt settlement is bad for your credit rating. Ultimately, your debt won’t be paid in full. Considering that debt consolidation entails trying to pay back your creditors each month, collector calls ought to be reduced. As any Tuscaloosa debt settlement consultant will affirm, this is often not the case during debt negotiations. The first settlement might not take place for six months. While your Tuscaloosa debt settlement agency is negotiating for you, your debts will continue to increase.
In Alabama, credit card providers have 3 years to take legal action for credit debt that’s owed them.
If you have $10,000 of debt, can’t repay what you owe, and would rather be free from debt than have a favorable credit record, credit card debt settlement may be a good option.
If you are one of these individuals, you are not alone – 9,775 Tuscaloosa residents owe at least $10,000 of credit card debt.
Tuscaloosa Debt to Income Ratio
If you have a debt-to-income (DTI) of more than 50%, then debt settlement or consolidation is probably a good idea. The perfect ratio? 30 to 36 percent. In Tuscaloosa, people make $14,353 each year, or $1,196 every month, which means a typical resident of Tuscaloosa ought to spend a maximum of $431 in credit card, mortgage, and loan payments, but a lot of us are shelling out $610 or more monthly. These consumers could benefit from debt relief in some form.
Tuscaloosa Debt Negotiation vs Management
Debt settlement is isn’t the same as credit counseling, debt management plans, or consolidating debt. They’re wholly different. Debt settlement programs involve a decrease in the amount you owe, while consolidation or management does not.
You continue to pay back your credit card issuers monthly as part of credit counseling; therefore your credit rating is not affected nearly as drastically as it is during a debt settlement. However, a debt management plan generally takes longer and in the end you’ll pay back your creditors in full. For details, click here: debt consolidation in Tuscaloosa, AL.
Paying Your Tuscaloosa Debt Negotiation Service
Whereas debt management programs have flat fees each month, debt settlement charges are typically applied once each credit card is paid back.
For the most part, settlement firms charge a percentage of the debt you want reduced, often as much as 15 percent. This service charge will most likely be assessed over a period of 1-2 years.
- Consumer Credit Counseling Service Of Alabama Inc, 2316 University Blvd, 35401
- Camron Law, 2330 University Blvd, #314, 35401
- Express Financial Services Inc, 2301 15th St, 35401
- Family Counseling Service of Tuscaloosa County, 2020 Paul W Bryant Dr, 35401
- Graham, G Veronica Owner – G & K Judgment Recovery, , 00923