At Debt Consolidation Texas, we make it easy to find the very best debt relief and credit counseling services in Abilene, TX. Credit counseling, also referred to as debt management, is a low-cost method of decreasing your debt payments without negatively affecting your credit score in the long run.
At the outset, credit counseling was created to help credit card providers recover debts from consumers who were falling behind on their payments before resorting to collection agencies. This means a lot of credit card counseling services are easy on the pocketbook. Of the 123,057 people living in Abilene, TX, we have calculated that 4,538 are unable to afford to make their revolving credit payments each month.
Do You Need Credit Counseling in Abilene, TX?
Your ratio of debt to income helps to confirm whether your state of affairs warrants credit counseling. Why don’t we examine a few stats based around an income of $1,558 each month, Abilene’s average:
- $561 (36%): Ideal
- $576 to $654 (37-42%): OK
- $670 to $779 (43-50%): Risky
- $779 or higher (50%): Excessive
Debt Counseling Plans in Abilene (TX)
Do you owe more than $10K of medical or credit card debt or have monthly payments for rent, loans, or credit cards that consume more than one half of what you make each month? Then you might need to enter a DMP, or debt management plan. A DMP is a means of consolidating debt, because the money you owe on a monthly basis is consolidated into one monthly amount, but no loans are necessary. This is different from various other types of debt consolidation in Abilene, TX that use home equity loans to pay off your debts.
All you’ve got to do is write only one check each month to your Abilene credit counseling company. They mail the correct amounts to each of your creditors.
The majority of debt management plans strive to have your debts paid in full 3-5 years. Although this typically doesn’t make your credit score decrease, it might be harder to take on new lines of credit. However, if you were to opt for debt negotiation, your credit scores would probably be significantly harmed.
How to Avoid Credit Counseling Shams in Abilene, TX
Assuming that you work with an honest agency, credit counseling can be a life-saver. Actually, the FTC now demands it for people declaring bankruptcy not just in Texas, but countrywide, but trusted credit counselors typically give you:
- Licensed Advisors
- Legitimate References
- Potential Non-Profit Standing
- Straight Responses to Any Inquiries
- No cost Recommendations (DMP’s do have costs)
- Personalized Plans of Action
Bear in mind that being a non-profit doesn’t guarantee that a credit counseling organization is bonafide, and being for profit doesn’t mean they are dishonest.
How Much Could Credit Counseling Help You Save?
The exact amount that credit counseling could save you will depend on your specific financial predicament. Thank goodness, your creditors may agree to waive penalties and bring down rates as part of a DMP. A simple assessment of your financial situation is needed to supply you with a precise savings estimate.
Consumer Bankruptcy Counseling in Abilene, TX
More and more people in Abilene have been having to file bankruptcy. It’s estimated that 253 of Abilene’s 123,057 consumers have found it necessary turn to bankruptcy. Credit counseling is an FTC prerequisite prior to filing for bankruptcy. You can do the session in person, on the phone, or over the internet, so long as you acquire the correct certificate
The program typically costs $50 and takes just 1 hour 30 minutes. To find approved pre-bankruptcy credit counseling agencies for Abilene residents, click the link. On the other hand, you can speak to a skilled debt specialist by completing this form.
Debt and Credit Counseling: Abilene (TX)
- White Monte J, 402 Cypress St, #310, 79601
- Money Management International, 500 Chestnut St, #1511, 79602
- Consumer Credit Counseling, , 79601