For people in Lutz, debt settlement is becoming an ever more popular way of becoming debt-free. At FL Debt Consolidation, our objective is to get you in touch with a debt settlement consultant in Lutz, FL that’s best for your needs. Are you ready to decrease your unsecured debt?
By law, Lutz debt settlement agents are required to disclose a good bit of information before you get started. They stipulate their prices, when they plan to get started, and the hazards you are up against. You’ll want to determine whether your Lutz debt settlement company is reputable. Verify how many years they have been negotiating debt, how much debt they’ve settled, what their rate of success is, how much they cost, and whether they are registered negotiate debts in the state of Florida.
There are a few signs of firms to stay away from. For example, if any Lutz debt settlement companies try and charge you fees before they settle your debt, don’t trust them – this is illegal!
Debt Settlement Drawbacks in Lutz, FL
Also called debt negotation in Lutz, debt settlement has some significant benefits:
- 20-60% Decrease in Debt
- Huge Interest Savings
- Brief 2-3 Year Timeline
- Variable Payment Scheme
- Alternative to Declaring Bankruptcy
However, it is a contentious process that requires a good bit of risk and sacrifice.
So that they can get a better settlement, your debt settlement company will probably have you stop making payments to your credit card companies. Your money will be deposited into a checking account. Once you’ve got enough saved to pay the agreed amount, not to mention the fee owed to your debt settlement firm, the money you owe will be paid off. Meanwhile, your FICO rating worsens because you’re no longer making your payments. And also, the collection agency calls may not come to an end. According to somewhat new FTC guidelines, this savings, or “special purpose” account must be yours to manage, irrespective of the results of your debt settlement. It also should be FDIC-insured.
Legal Action and Debt Settlement
You should understand that credit card companies are able to take legal action against an individual so as to collect a debt. The risk of being sued is higher given that you quit repaying your creditors month after month. A a debt settlement attorney in Lutz, FL, can’t stop a credit card company from going to court. If you have a local Lutz attorney, it’s likely they can handle your case.
FL Statute of Limitations as Regards Credit Card Debt
As a resident of Lutz, you ought to be aware of the statute of limitations on debt:
- Statute of Limitations: 5 years
- State Law: 95.1
For you to qualify for a credit card settlement program in Lutz, FL, you normally have to have:
- $10,000 in Credit Card Debt
- $300 a Month For Payments
There are 44,672 people in Lutz, and it’s thought that 4,425 carry credit card debts of more than $10,000.
Your credit consultants will look at your debt to income ratio. The perfect ratio? 33 to 36%. In Lutz, people make $13,502 per year, or $1,125 every month, meaning the average resident of Lutz should pay out a maximum of $416 in credit card, mortgage, and vehicle/student loan payments. Sadly, many Lutz residents owe $574 or more every month. These borrowers are in need of debt relief, whether it be credit card settlement or consolidation.
Consolidating vs Negotiating Your Debt in Lutz, FL
Attempting to decide between consolidating and settling your debt? Nearly all debt management plans lead to more affordable rates of interest for your credit cards. However, there is zero reduction of overall debt. When it comes to debt management, consolidation, or counseling, your monthly payment is minimized and continue paying back the card companies until your debts are paid off. There is no doubt that this is is more favorable for your FICO score. However, reduced interest rates and fees are the only form of savings you’ll enjoy.
Click here for additional information about credit counseling in Lutz.
How Much Will Debt Settlement Cost?
Being the most drastic debt relief option for residents of Lutz, debt settlement is generally the highest priced.
As a rule, settlement agencies charge a percentage of the amount you want settled, often as much as 15 percent. Essentially they are forbidden by law from making you pay until a debt has been paid off.
Lutz debt settlement attorneys are often pricier than hiring a debt settlement company. The fee system for Lutz debt settlement attorneys is distinct from that of debt settlement companies. The concern is that they get paid a large percentage of your debt savings. How much? Normally one-third. Frequently, this is less affordable than a debt settlement service.
- The Law Office of William T. Bonner- PA, 16017 N Florida Ave, #123, 33549