Would you like to discover an alternative to declaring bankruptcy by paying down at least part of your debts to your creditors? Enlisting the assistance of a reputable Lake Wales debt settlement firm might be the first step out of debt.
Our objective is to find you a debt settlement expert in Lake Wales, FL – today – that can:
- Negotiate with your credit card providers.
- Acquire a written settlement for debt elimination.
- Set up a program to pay off your credit balances in 2 to 4 years.
Finding a Debt Settlement Agency: Lake Wales (FL)
Don’t settle your debts using some unethical company. Virtually any good debt negotiator will give you the following specifics before enrolling. They spell out their rates, their starting dates, and the risks you face.
Be sure to determine whether or not your Lake Wales, FL debt settlement firm is an honest one. See the following:
- Certifications: Premier certifications include AFCC and IAPDA.
- Fees: Confirm that the rates you pay are affordable.
- Consumer Ratings: Try to find favorable evaluations from previous clients.
Debt settlement offers several well-known advantages:
- Debt Reduced by 20-60%
- Huge Savings in Interest
- Short 24-36 Month Timeline
- Variable Settlement Structure
- Substitute for Bankruptcy
However, it’s an intense process that comes with a good amount of risk and sacrifice.
You really need to speak to a debt expert to determine whether or not debt settlement is right for you.
With debt settlement, you completely quit paying your creditors. Instead, you set aside money in a special checking account until you have a sufficient amount to pay the amount negotiated by your Lake Wales debt settlement agency. Lamentably, your FICO score worsens because you’re no longer paying your creditors. Keep in mind, filing for bankruptcy would kill your credit ratings as well. In keeping with fairly new FTC regulations, this savings account must be in your control, regardless of the outcome of your debt settlement. It also has to be FDIC-insured.
Remember that creditors can sue a borrower in order to pursue a debt. The chance of getting sued goes up because you stop paying your creditors on a monthly basis.
Unfortunately, a debt settlement attorney in Lake Wales, FL, cannot stop litigation from any creditor who is not happy. They might represent you in court, or they may not.
Debt collectors have only so long to take legal action for unsecured debt. According to FL’s statute 95.1, this is 5 years.
If you have $10,000 of debt, are unable to make your payments, and would rather get out of debt than have a good credit record, credit card debt settlement might be a good option.
If you fall into this category, don’t be discouraged. We estimate that 3,412 of Lake Wales’s 34,439 residents have at least this much debt.
What’s Your Monthly Debt Load?
Besides how much you owe in total, you should figure out your debt to income ratio.
Say you get paid $359 every month, the Lake Wales average. If you spend under $129 for credit cards, loans, and mortgage/rent, you have a healthy debt load of 36%). If you are spending $133-$151, which is 37-42%, you need to scale back your expenses. If are shelling out $154 to $180, which is 43-50%, you’re on the brink of economic collapse, and if are forking over more than $183, you’re in a bad way and should speak with a debt specialist.
Managing vs Negotiating Your Debt in Lake Wales (FL)
A lot of people mix up credit card debt settlement and consolidation. They are entirely separate. A lot of debt management programs offer up reduced interest levels for your credit cards. However, there is zero reduction in active debt is involved.
You continue to pay back your credit card companies on a monthly basis as part of a debt management plan. So your credit rating isn’t impacted nearly as much as it will be during a debt settlement, during which you quit repaying your debt. On the other hand, consumer credit counseling generally takes longer and eventually you’re going to pay off your creditors in full. Check here for additional information about credit counseling in Lake Wales, FL.
Rates for Debt Settlement
No debt settlement agencies in Lake Wales should charge you at signup. Any qualified debt settlement company in Lake Wales, FL, will only bill you when an account is paid back. Other debt relief solutions ordinarily entail regular monthly fees. Normally, settlement firms charge you a percentage of the debt you want settled, often up to 15 percent. Generally they’re prohibited legally from assessing a fee until a balance has been paid off.
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