For residents of Royal Palm Beach, debt settlement is an increasingly popular way out of debt. At Florida Debt Consolidation, our aim is to find you a debt settlement agency – this minute – who works with consumers in Royal Palm Beach. Isn’t it time to decrease your debt?
Of the 87,552 people who live in Royal Palm Beach, we estimate that 8,673 owe at least $10,000 to the credit card issuers. We can help you find the debt relief option that best meets your needs.
Selecting a Debt Settlement Company: Royal Palm Beach, FL
According to the FTC, Royal Palm Beach debt settlement agents must provide you with a good bit of details prior to joining:
- Charges: charges have to be completely enumerated.
- Schedule: they have to tell you when they are going to contact the credit card providers, as well as the funds must be saved.
- Risks: they have to inform you of the negative repercussions that come as a result of not paying your creditors
Make sure you find out whether or not your Royal Palm Beach, FL debt settlement service is reputable by researching the following:
- How long have they been in operation?
- How much debt have they settled?
- How much do they charge?
- What is their Better Business Bureau (BBB) record?
- What is their rate of success?
- Are they registered in the state of Florida?
There are a few indicators of programs you should stay away from. For instance, if any Royal Palm Beach, FL, debt settlement agencies try to charge advance fees, you can’t trust them.
Downsides of Debt Settlement: Royal Palm Beach (FL)
A debt settlement program has some highly-touted advantages:
- Debt Reduced by 20-60%
- Significant Savings in Interest
- Brief 2-3 Year Timeline
- Flexible Repayment System
- Alternative to Declaring Bankruptcy
However, it has more drawbacks than other sorts of debt relief.
To negotiate the biggest debt reduction possible, your debt settlement firm will probably recommend that you stop paying back your credit card companies. Your funds will be deposited into a savings account. When you’ve got sufficient funds to pay the arranged settlement, plus your debt settlement firm’s fee, your card balances will be paid off. Meanwhile, your credit rating will get even worse. As expected, declaring yourself bankrupt would kill your credit score as well. According to quite recent FTC policies, your savings account has to:
- Be at an FDIC-insured establishment.
- Give you unfettered withdrawals.
- Not charge you for removing money.
It’s important to understand that banking institutions are able to take legal action against a borrower to collect a debt. There is a greater chance of being sued. Why is that? Because you quit repaying your creditors.
As a resident of Royal Palm Beach, you need to understand the statute of limitations for debt:
- Statute of Limitations: 5 years
- State Statute: 95.1
- Further Information: www.flsenate.gov/Laws/Statutes/2010/95.11
Minimum Standards for Debt Settlement: Royal Palm Beach (FL)
Debt settlement may be a good idea if you respond with a yes to these 3 questions:
- Are you considering declaring bankruptcy?
- Do you have $10,000 or more in debt?
- Are you comfortable with a low credit score if it helps you reduce your debt load?
Of the 87,552 people who live in Royal Palm Beach, 8,673 carry credit card balances in excess of $10,000.
What’s Your DTI?
Besides how much you owe in total, you should look at your debt as compared to your income. The optimal ratio is 33 to 36 percent. The average income in Royal Palm Beach, FL, is $48,037 per annum, or $4,003 on a monthly basis. That means the average resident of Royal Palm Beach should fork out a maximum of $1,441 in credit card, mortgage/rent, and loan payments. Sadly, a lot of us are spending more than $2,002 on a monthly basis. These consumers could use debt relief solutions, whether it be credit card settlement or consolidation.
Whether you choose to settle or consolidate your credit balances, you should have a consolidated monthly payment. But the similarities terminate there.
Whereas debt settlement results in reduced debt, consolidation and management do not.
With debt management, consolidation, or counseling, your payment per month is combined and continue to repay the card companies until your debt is paid off. This is is more favorable for your FICO scores. On the other hand, the only debt savings are the result of decreased interest rates and late fees.
Visit here to read more about debt consolidation in Royal Palm Beach.
How Debt Reduction Services Get Paid
As the most radical debt relief solution available, debt settlement is generally not cheap. As a rule, settlement agencies will charge you approximately 20 percent of your debt – that’s a whole lot! Essentially they’re restricted legally from charging you until a balance has been repaid.
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