Are you looking to get your creditors to enable you to settle for a reduced amount of what you owe? Working with a solid debt settlement agency in Saint Augustine, FL, is certainly one option. Let us find you a debt settlement firm that will work to lower your credit card debt.
Finding a Debt Settlement Firm: Saint Augustine (FL)
By law, Saint Augustine debt settlement agencies have to provide you with a good bit of details before you sign up, such as how much the fees are for their service, how much time until they speak to your credit card companies, and how much impact debt settlement will have on your credit ratings.
Be sure that your Saint Augustine, FL debt settlement service is legit. Verify the following:
- How many years have they been in business?
- How many negotiations have they handled?
- How much are their fees?
- What is their Better Business Bureau score?
- How effective have they been?
- Are they licensed in the state of Florida?
If any Saint Augustine debt settlement services try to charge upfront fees, report them to the authorities. This is illegal!
Also called debt negotiation, debt settlement is the only solution that actually leads to a reduction in the original amount owed. But it requires serious thought.
Before you proceed with debt settlement, there are certain things you should know. Firstly, your credit card issuers do not have to agree to settlement terms. Secondly, debt negotiation can detrimentally impact your FICO score. In the end, your credit card debt won’t be fully paid off. Since debt consolidation requires trying to repay what you owe every month, collector calls should become less frequent. As any Saint Augustine debt settlement consultant can tell you, this is often not the case with debt settlement. It may take up to 6 months for anything to happen, during which time your debt will mount. Debt you don’t have to pay may be taxable.
In order to meet the criteria for a credit card settlement program in Saint Augustine, FL, you ordinarily need:
- $10,000 in Debt
- $300 Per Month to Spend
If you meet these criteria, don’t panic. It’s estimated that 7,067 of Saint Augustine’s 71,339 residents are trying to repay at least this much debt.
What’s Your Debt to Income Ratio?
If your debt-to-income ratio is more than 50%, then debt settlement or consolidation is probably a good idea. The ideal ratio? 36%. In Saint Augustine, consumers make $28,145 each year, or $2,345 on a monthly basis. That means the average Saint Augustine resident ought to pay out no more than $868 in credit card, mortgage, and auto/student loan repayments. Unfortunately, many individuals are shelling out $1,196 or more month after month. Not surprisingly, these individuals are in need of debt relief, whether it be debt settlement or consolidation.
A lot of people mistake credit card settlement and debt consolidation. They are entirely distinct solutions. Debt settlement programs involve a decrease in what you owe, and consolidation or management won’t.
You pay your credit card companies every month under credit counseling, so your credit score is not harmed nearly as dramatically as it will be after debt negotiations. However, credit counseling generally takes longer and in the end you’re going to pay your creditors in full. For more information, visit here: debt consolidation in Saint Augustine, FL.
No debt relief agencies in Saint Augustine should charge you upfront. Any legitimate debt settlement firm in Saint Augustine, FL, will only charge you after a credit card is paid off. Most debt relief solutions typically entail regular monthly payments. Normally, settlement firms will charge you approximately 14-18 percent of the amount you owe – this is a big chunk of change! Generally speaking, they have been restricted by law from charging you until an account has been repaid.
A number of law firms in Saint Augustine, FL, may well offer debt negotiation support for their clients. While nearly all debt settlement agencies don’t charge you a bill every month, the majority of law firms do. That’s fine, except that they are entitled to a considerable chunk of your debt savings. The percentage is going to vary, but it’s normally approximately 30%. Typically, this is more costly than a debt settlement company. Bear in mind that this lawyer won’t be able to provide you with legal advice if they’re not a local Saint Augustine debt settlement attorney, or they are licensed in the state of Florida.
- Florida Debt Settlement Company? Contact us!