Debt settlement is arguably the most radical of all the debt relief strategies. At Florida Debt Consolidation, we can get you in touch with a debt settlement expert in Safety Harbor – today – that can negotiate with your creditors to reduce your debt.
Choosing a Debt Settlement Agency in Safety Harbor (FL)
Legally, Safety Harbor debt settlement solutions must disclose a good bit of specifics prior to signing on. They establish their costs, when they plan to get started, and the hazards you face.
Always make sure that your Safety Harbor, FL debt settlement firm is reputable by researching the following:
- Accreditation: Top qualifications include AFCC and IAPDA.
- Payment Structure: Check that the fees they charge are competitive.
- Customer Testimonials: Search for favorable testimonials from former customers.
Though debt settlement can lead to dramatic debt reduction, because of the negative effect on your credit score, it is seen as a last resort.
Pumped up about debt settlement? There are some things you should keep in mind. Firstly, debt settlement is bad for your FICO score. Ultimately, your credit card debt will not be paid in full. Since debt consolidation will involve paying off creditors on a monthly basis, collector calls should grow less frequent. As any Safety Harbor debt settlement professional will tell you, that’s not the case when it comes to debt settlement. The first settlement probably won’t be agreed upon for 180 days. During that time, your credit card debts will mount. Forgiven debts can be taxed.
Debt collectors have a limited period of time to take legal action for delinquent credit debt. According to FL statute 95.1, this is 5 years.
Ideal Safety Harbor debt settlement prospects owe at least $10K in debt, are considering declaring bankrupty, and cannot afford to make the minimum payments on their credit card bills monthly.
If you have $10,000 of credit card debt, don’t worry – 1,799 Safety Harbor residents are trying to repay at least $10,000 of credit card debt.
What’s Your Monthly Debt Load?
Together with how much you owe in total, you’ll want to look at your debt as compared to your income. The optimal ratio is 33-36%. The average income in Safety Harbor, FL, is $49,760 annually, or $4,147 each month, meaning the average resident of Safety Harbor ought to pay about $1,493 in credit card, mortgage/rent, and auto/student loan payments, but many Safety Harbor residents owe over $2,074 month after month. Without a doubt, these people need debt relief, either credit card settlement or consolidation.
Attempting to decide between consolidating and settling your debt? Most debt management programs result in lower interest rates on your credit cards and/or payday loans, but no forgiveness of the balance due. You pay back your creditors on a monthly basis during a debt management plan, meaning your credit rating isn’t harmed nearly as much as it is after a debt settlement, during which you stop repaying what you owe. Then again, credit counseling generally takes longer and eventually you will repay your debt in full. Read this article for more information about credit counseling in Safety Harbor.
No debt relief companies in Safety Harbor can charge you upfront. Any legitimate debt settlement company in Safety Harbor, FL, will only charge a fee when a balance is paid back. Other debt relief options usually call for regular monthly payments. Most settlement agencies will charge you around 14-18% of your debt – that’s significant! In most cases, they’re prohibited by the FTC from making you pay until an account has been repaid.
Debt Settlement Lawyers in Safety Harbor, FL
Safety Harbor, FL, debt settlement attorneys are likely to be less affordable than working with a debt settlement consultant. The compensation structure for Safety Harbor debt settlement attorneys tends to be distinct. That sounds fine, except that they will also take a substantial portion of the debt they save you, typically 30 percent. Usually, this ends up being less affordable than a debt settlement service.
- Florida Debt Settlement Company? Contact us!