Debt settlement is probably the most extreme of all the debt relief options. At Florida Debt Consolidation, our aim is to find you a debt settlement consultant who can:
- Bargain with your credit card issuers.
- Receive an official contract for debt elimination.
- Set up a program to pay off your creditors in 2-4 years.
Please don’t trust some shady firm. Any honest debt negotiator will provide you with a good bit of details before you get started:
- Charges: all fees are to be fully spelled out.
- Duration: they must inform you when they’ll reach out to the credit card companies, not to mention how much money you must have saved.
- Risks: they should tell you about the unfavorable implications of deciding not to pay your creditors
Always make sure that your Crystal River, FL debt settlement service is legit by researching how long they’ve been in business, how much debt they have settled, what their rate of success has been, how much they charge, and be certain they’re certified to conduct business in the state of Florida.
Debt Settlement Drawbacks: Crystal River (FL)
Although debt settlement can bring about serious reduction in your debts, it is an extreme succession of negotiations that has several possible risks and sacrifices.
In a debt settlement, you simply stop making payments to the credit card providers. Rather, you place funds into a special savings account until you’ve got enough to pay the amount negotiated by your Crystal River debt settlement firm. Regrettably, your FICO score declines because you’re no longer paying your creditors. Certainly, declaring yourself bankrupt would crush your credit scores as well. In keeping with relatively new FTC rules, this savings, or “special purpose” account should be yours to manage, whatever the outcome of your debt settlement. It also should be FDIC-insured.
How do you know if debt settlement is a good option for you?
- Have you been looking into declaring bankruptcy?
- Do you owe $10,000 or more in debt?
- Are you comfortable with having unfavorable credit ratings?
Of the 17,869 people who live in Crystal River, 1,770 carry credit card debt of at least $10,000.
If you’ve got a debt-to-income (DTI) of more than 50%, then licensed debt relief is worth exploring. The ideal ratio is 33 to 36 percent. The average income in Crystal River, FL, is $21,310 each year, or $1,776 every month, which means a typical Crystal River resident should pay out less than $639 in credit card, mortgage/rent, and vehicle/student loan repayments. Regrettably, many individuals are spending $888 or more every month. Without a doubt, these consumers could use debt relief in some form or another.
Crystal River Debt Settlement vs Credit Counseling
Are you trying to decide between credit card debt settlement and consolidation?
Whereas debt settlement results in reduced debt, management and consolidation do not. When it comes to debt management, consolidation, and counseling, your payment amount is combined and still repay the card companies until your debt is fully paid. There’s no question that this strategy is does far less damage to your FICO ratings, but the only debt savings are the result of more affordable rates of interest and late fees. Visit here to read more about credit counseling in Crystal River.
No debt settlement services in Crystal River should bill you at signup. Any qualified debt settlement service in Crystal River, FL, will only charge you after each account is repaid. Other debt relief options normally call for regular monthly fees.
As a rule, settlement firms charge you a percentage of the balance you want settled, often about 15%. Basically they are restricted by law from making you pay until an account has been paid off.
- Florida Debt Settlement Company? Contact us!