If you would like to get rid of debt without resorting to bankruptcy, a debt settlement agency in Birmingham, AL, might be the answer.
We can match you with a debt settlement firm in Birmingham, AL – now – who will:
- Bargain with your credit card issuers.
- Acquire an official contract for debt reduction.
- Develop a program to pay back your creditors in 2 to 4 years.
Are you ready to lower your unsecured debt?
By law, Birmingham debt settlement firms are required to give you certain information prior to signing up:
- Charges: charges must be carefully spelled out.
- Schedule: they have to inform you when they are going to reach out to the credit card companies, not to mention the funds must be saved.
- Liabilities: they should inform you of the negative implications of choosing not to pay your creditors
You should make sure your Birmingham debt settlement firm is trustworthy. Check the following:
- How long have they been in operation?
- How much debt have they settled?
- How much are their fees?
- What is their score with the BBB?
- How effective have they been?
- Are they registered to do business in Alabama?
Do not forget: no Birmingham debt negotiation company is supposed to charge fees before they settle your debt!
Although debt settlement can bring about substantial forgiveness of your credit card debt, you should speak to a professional debt consultant before moving forward.
The solutions offered by debt settlement firms in Birmingham, AL, aren’t without their downsides:
- It’s very bad for your credit ratings.
- Debt never completely paid back.
- Debt continues to increase during negotiations.
- Debt collector calls may worsen.
- Debt that’s settled is taxable.
- Could be half a year before settlement is agreed upon
AL Statute of Limitations for Debt
In Alabama, card issuers have 3 years to go to court for debt you owe them.
Who Should Opt For Debt Reduction: Birmingham (AL)
Ideal prospects for credit card settlement in Birmingham are carrying no less than $10K in debt, are facing bankruptcy, and can no longer afford to make the minimums on their credit card bills each and every month.
Of the 494,275 residents of Birmingham, 48,963 owe credit card debts of at least $10,000.
What’s Your DTI?
Your credit consultants will consider your debt to income ratio (DTI).
In a nutshell, if you are dedicating over half of your wages in credit cards, rent/mortgage, and auto loans, you’ll want to consult a debt settlement expert in Birmingham, AL. Considering that the average income in Birmingham is $1,457 a month, we’re talking about $729. You really want to aim for a ratio of somewhere around 36% ($525 in Birmingham).
Settling your debts and consolidating them are two separate methods.
While debt settlement results in a reduction in debt, management won’t. Other methods of relieving debt – debt consolidation, management, and counseling – have much less of a negative impact on your FICO ratings over the years, but these are extended alternatives that require you to pay back everything you owe. For details, visit here: credit counseling in Birmingham.
As the most dramatic debt relief option for residents of Birmingham, debt settlement is generally the most expensive.
For the most part, settlement firms will charge you around 14-18% of the balance due – which is a lot! Generally speaking, they are forbidden by law from charging you until a balance has been repaid.
You may come in contact with attorneys that provide debt settlement on behalf of their clients. Most attorneys will charge you some kind of retainer, generally 5% of what you owe, as well as a fee every month. The issue is that they will also take a considerable portion of debt reduction amount: one-third. This is typically less affordable than a debt settlement firm.
Debt Settlement Services in Birmingham, AL
- Century Acceptance Corporation, 400 Century Park S, 35226
- Cindee Dale Holmes Attorneys At Law, 1909 5th Ave N, #200, 35203
- Consumer Credit Counseling Svc. of Central Alabama, 1401 20th St S, 35205
- Debt Management Services, 300 88th St S, 35206
- Debt Relief Counseling Services, 8038 Rugby Ave, 35206
- Holmes & Associates, 1909 5th Ave N, 35203
- McDonald Gina Attorney, 2080 Valleydale Rd, 35244
- Town And Country Acceptance Corporation, 2081 Columbiana Rd, 35216
- Debt Consolidation G’ Teed 50% Off Your Debt!, 480 24th St N, 35203
- Erdberg, Joe S – Jaffe & Erdberg PC, 205 20th St N, #N-817, 35203
- Hodges, David President – David E Hodges, PC, 205 20th St N, #923, 35203
- Massey, Stotser & Nichols, PC, 1780 Gadsden Hwy, 35235
- Pearson, Gina Attorney – Over the Mountain Law Center, LLC, 1903 Oxmoor Rd, 35209
- Consumer Credit Counseling, 2806 Ruffner Rd, 35210
- Consumer Credit Counseling, 5734 Crestwood Blvd, 35212
- Consumer Credit Counseling, 2121 14th Ave S, 35205
- Consumer Credit Counseling, 1633 Montgomery Hwy, 35216