You don’t want to declare bankruptcy. A trustworthy Grapevine debt settlement firm might be able to help. At Texas Debt Consolidation, our mission is to help you find a debt settlement expert that can negotiate with your creditors to minimize your credit card debt. Isn’t it time to get rid of credit card debt?
How much will debt settlement save you? Get a free quote!
Legally, Grapevine debt settlement services have to divulge the following specifics before you join up:
- Charges: all fees should be fully explained.
- Schedule: they must tell you when they are going to reach out to the credit card providers, as well as how much money you must have saved.
- Dangers: they must tell you about the negative effects to your credit that come as a result of choosing not to pay your creditors
You’ll want to determine whether your Grapevine, TX debt settlement firm is reputable by researching how many years they have been in operation, how much debt they’ve managed, what their success rate has been, what their prices are, and make sure they’re licensed to do business in the state of Texas.
Commonly known as debt negotiation in Grapevine, debt settlement is the only option that reduces the principal. But it means depositing your money into a checking account each and every month instead of repaying your credit card balances. Then you pay them the settlement sum. Of course, this will severely impact your credit score.
In order to leverage the lowest debt reduction they can, your debt settlement agency will probably recommend that you stop paying back your credit card companies. Your funds will be put into a bank account. When you have enough money to pay the arranged amount, your debt will be paid off. Meanwhile, your credit score will get even worse. Furthermore, the collections calls probably won’t get any better. In keeping with quite recent FTC guidelines, your savings account has to:
- Be with an FDIC-insured institution.
- Provide you with unfettered access.
- Not charge you for withdrawing funds.
TX Statute of Limitations for Credit Card Debt
Credit card providers have a limited amount of time to take legal action for overdue credit card debt. In Texas, this is 4 years.
Preferred Debt Settlement Candidates: Grapevine, TX
To meet the criteria for a debt settlement program in Grapevine, TX, you ordinarily need:
- $10,000 in Credit Debt
- $300 Per Month to Spend
If you fall into this category, you are not alone. We estimate that 6,229 Grapevine residents are trying to repay at least this much debt.
In addition to your total debt, you’ll want to determine your debt to income ratio.
Simply put, if you are allocating over half of your wages to credit cards, rent/mortgage, and vehicle loans, you need to speak to a debt settlement specialist in Grapevine, TX. Considering that the average income in Grapevine is $5,625 each month, this is just $2,813. You really want to shoot for a ratio of approximately 36 percent, or $2,025 for the average Grapevine resident.
Both debt settlement and management benefit from just one payment per month. But the similarities stop there. These are all methods of debt relief. Debt settlement differentiates itself by resulting in a total decrease in the amount owed. With debt management, consolidation, and counseling, your payment amount is consolidated, but you continue paying off your creditors until your debts are fully paid. There’s no question that this approach is does far less damage to your FICO rating, but the only debt savings come from discounted rates and penalties. For more details, click here: credit counseling in Grapevine, TX.
As the most drastic debt relief option at your disposal, debt settlement is generally the most expensive.
Nearly all settlement firms charge you a percentage of the balance you want settled, often about 15%. Though you won’t be forced to pay until after they actually reduce your debt.
Grapevine debt settlement attorneys are almost always less affordable than dealing with a debt settlement consultant. The fee structure for debt settlement attorneys in Grapevine, TX, is actually different from that of most debt settlement firms. That’s fine, but they are entitled to a significant portion of the forgiven debt: 30%. This is normally less affordable than a debt settlement service.
Grapevine (TX) Debt Settlement Companies
- Consumer Credit Counseling Service – Greater Fort Worth, 1023 S Main St, 76051