It might be possible to settle your debts for thousands less than you ever imagined, and prevent bankruptcy on top of that. Our objective is to help you find a debt settlement agency who can negotiate with your creditors to minimize your debt.
Of the 21,996 people who live in Athens, 2,179 owe at least $10,000 on their credit cards. Debt settlement could potentially reduce your debt to $4000-$8000.
Finding a Debt Settlement Company: Athens, TX
Please don’t put your trust in some underhanded agency. Virtually any reputable debt settlement company in Athens, TX, will give you some specifics before getting started:
- Fees: all fees should be completely spelled out.
- Duration: they must say when they’ll contact the credit card providers, and the funds must be saved.
- Liabilities: they have to explain the negative repercussions for your credit score
Be certain that your Athens debt settlement consultant is legitimate by verifying how many years they have been in operation, how much debt they’ve settled, what their rate of success has been, what their prices are, and be certain they’re registered negotiate debts in the state of Texas.
Athens (TX) Debt Settlement Considerations
Though debt settlement can result in substantial debt reduction, it involves depositing funds into a savings account monthly in lieu of repaying your credit card balances. When you have enough money saved, you send them the arranged amount. Needless to say, this can hurt your credit ratings. How much will a debt settlement agency in Athens, TX, help you save? Get a free estimate!
To negotiate the biggest debt reduction possible, your debt settlement agency will probably ask you to quit repaying your creditors. Your funds will go into a savings account. When there is sufficient funds to pay the agreed settlement, your debts will be repaid. Lamentably, your credit rating gets worse because you’re not paying your creditors. Needless to say, bankruptcy would ruin your credit ratings too. According to fairly new FTC policies, this savings, or “special purpose” account must be under your complete control, regardless of the outcome of your credit card settlement. It also has to be FDIC-insured.
You should understand that banking institutions are able to sue you to collect a debt. There is a greater probability of being sued since you quit repaying your creditors each month.
TX Statute of Limitations as Regards Debt
Credit card companies have a limited period of time to file a suit for past due credit debt. In Texas, this is 4 years.
If you owe $10,000 of debt, aren’t able to make your payments, and would rather be debt free than have a good credit record, debt settlement may be the right idea.
Of the 21,996 people who live in Athens, 2,179 are estimated to owe credit card debts of at least $10,000.
What’s Your DTI?
People who have debt to income ratios of 50% or higher are ideal candidates for debt relief in some form or another, whether it be settlement or consolidation.
In a nut-shell, if you’re allocating over half of what you make in credit cards, rent/mortgage, and/or automobile or student loans, you should talk to a debt settlement consultant in Athens, TX. Given that the average income in Athens is $1,398 a month, we’re talking about $699. You really want to aim for a ratio that’s nearer to 36 percent, or $503 for the average Athens resident.
A lot of people mistake debt settlement and consolidation. They’re totally separate. All of these are methods of debt relief. Debt reduction stands alone in that it contributes to a total reduction in the amount owed.
You repay your creditors every month as part of credit counseling, so your credit rating is not damaged nearly as drastically as it can be during debt negotiations, during which you quit repaying what you owe. Having said that, debt consolidation generally takes longer and ultimately you’re going to repay your debt in full. For more information, click here: credit counseling in Athens, TX.
While debt management plans have ongoing monthly fees, debt settlement expenses are generally assessed after each creditor is paid back. For the most part, settlement companies charge a percentage of the balance you want settled, often up to 15 percent. Though you shouldn’t be forced to pay until after they actually settle your debt.
You may run into law firms that provide debt negotiation. The compensation framework for debt settlement attorneys in Athens is distinct. The problem is that they get paid a sizeable chunk of debt reduction amount: 30%. This is ordinarily less affordable than the flat rate charged by a debt settlement company.
Debt Settlement Specialists: Athens (TX)
- Texas Debt Settlement Company? Contact us to be listed.