Can’t pay off your credit card debt? Debt settlement might be able to help you trim down what you owe by a considerable amount.
At FL Debt Consolidation, we can help you find a debt settlement expert in Merritt Island, FL who works with people in Merritt Island. There are zero commitments, and it’s cost-free.
Locating a Debt Settlement Agency in Merritt Island, FL
Don’t settle your debts using some underhanded service. Virtually any reputable debt settlement company in Merritt Island, FL, will provide you with the following specifics before you enroll:
- Fees: all fees must be completely explained.
- Timeline: they must say when they’ll contact the credit card issuers, not to mention how much money must be saved.
- Risks: they have to explain the adverse consequences for your credit rating
You should make sure your Merritt Island, FL debt settlement specialist is an honest one. Check how many years they’ve been in operation, how many negotiations they’ve managed, what their rate of success is, how much they cost, and make sure they’re registered to conduct business in Florida.
No Merritt Island, FL debt negotiation companies are allowed to charge advance fees!
Debt settlement is the only debt option that reduces your overall unsecured debt, rather than just your interest rate. But it drastically impacts your credit ratings. For that reason, you have to be 100% sure that it is the proper option to reduce your debt.
During debt settlement, you up and quit making payments to the credit card issuers. Instead, you save funds in a specific checking account until you have enough to pay the settlement arranged by your Merritt Island debt settlement company. Regrettably, your FICO score gets worse and worse. However, filing for bankruptcy would crush your credit rating too. According to fairly new FTC guidelines, this savings account has to:
- Be FDIC-insured.
- Provide you with unrestricted withdrawals.
- Not penalize you for extracting money.
Lawsuits and Debt Settlement
Remember that credit card providers are able to file a lawsuit so as to pursue a debt. With debt settlement, the chance of being sued is higher because you stop repaying them. Contrary to popular belief, a debt settlement attorney in Merritt Island, FL, cannot keep a credit card company or lender from taking legal action. Sometimes your law firm can handle your case, a lot of times they won’t.
Suitable prospects for debt settlement owe at least $10K in debt, are thinking about bankruptcy, and can’t afford the minimums on their credit or store cards month after month.
If you meet these criteria, don’t be discouraged – 4,199 of Merritt Island’s 42,391 residents are living with this much debt.
If you have a debt-to-income (DTI) ratio of more than 50%, then licensed debt relief is probably a good idea. The ideal ratio is 36 percent. The average income in Merritt Island, FL, is $30,551 a year, or $2,546 on a monthly basis, which means the average resident of Merritt Island should pay out no more than $942 in credit card, mortgage/rent, and auto/college loan installments. Sadly, many people in Merritt Island are forking out $1,298 or more month after month. Not surprisingly, these people could benefit from debt relief solutions, either debt settlement or consolidation.
Debt settlement and consolidation/management each have their advantages and disadvantages. A lot of debt management plans offer up lower rates of interest on your credit cards and/or payday loans. However, there is no forgiveness of the balance due.
You continue to repay your creditors month after month during a debt management plan, so your credit rating is not damaged nearly as much as it will be after debt negotiations. However, credit counseling generally takes longer and in time you’re going to pay off 100% of what you owe. Visit here to find out more about credit counseling in Merritt Island.
Compensating Your Merritt Island, FL Debt Negotiation Service
While debt management programs have regular fees each month of $25 to 40, debt settlement costs are typically assessed when each balance is repaid.
Generally, settlement firms will charge you around 14-18% of the balance due – which is a lot! This fee will most likely be assessed over 12-24 months.
Merritt Island (FL) Debt Settlement Agencies
- Florida Debt Settlement Company? Contact us!