If you are looking to decrease your debt to 40-80% of what you borrowed, debt settlement is a popular option. At Texas Debt Consolidation, we can put you in contact with a debt settlement consultant in North Richland Hills that works with North Richland Hills residents. Are you ready to reduce your unsecured debt?
Locating a Debt Settlement Service in North Richland Hills (TX)
You shouldn’t trust your debt settlement to some dishonest service. Virtually any honest debt settlement company in North Richland Hills, TX, will divulge the following information before joining, including how much the fees are for their assistance, how much time their program takes, and what risks are involved. Make sure you determine if your North Richland Hills debt settlement consultant is reputable by finding out the following:
- How many years have they been operational?
- How much debt have they settled?
- How much are their fees?
- What is their success rate?
- Are they registered in Texas?
Should any debt settlement company in North Richland Hills wants to charge you fees in advance, get out of there.
Although debt settlement can bring about drastic debt reduction, it drastically impacts your FICO score, so you’ve got to be totally positive that it’s the correct solution to reduce your debt.
Settling your debts in this way does have some downsides:
- It’s very bad for your credit score.
- Debt never totally repaid.
- Debt continues to increase during negotiations.
- Calls from collection agencies may get worse.
- Debt that you don’t pay is usually taxed.
- Can be 180 days before settlement is agreed upon
Debt Settlement and Litigation
You should understand that credit card providers can take legal action to help them collect a debt. There is an increased chance of getting sued simply because you stop repaying them.
A local North Richland Hills debt settlement attorney cannot keep a credit card company or lender from suing.
As a resident of North Richland Hills, you need to understand the Texas statute of limitations for debt:
- Statute of Limitations: 4 years
- State Statute: 16.004
Minimum Requirements for Debt Settlement in North Richland Hills (TX)
Ideal prospects for debt settlement are carrying at least $10K in debt, are considering bankruptcy, and cannot afford the minimums on their credit card bills month after month.
If you meet these criteria, don’t panic. We estimate that 6,617 North Richland Hills residents are living under at least this much debt.
Calculating Your Debt-to-Income Ratio
Your debt consultants will be interested in your debt to income ratio.
In short, if you are allocating over half of what you make in credit cards, home loan, and/or auto or college loans, you need to speak to a debt settlement specialist in North Richland Hills, TX. Considering that the average income in North Richland Hills is $2,972 a month, this is just $1,486. You want to shoot for a ratio that’s nearer to 36 percent ($1,070 in North Richland Hills).
Settling your debt and simply consolidating it are two separate methods. All of these are methods of eliminating debt. Debt reduction separates itself by bringing about an absolute decline in the balance due.
Other methods of relieving debt – debt consolidation, management, and counseling – are much better for your credit score over the years, but these are extended options in which you pay all of your debt.
Check here for additional information about debt consolidation in North Richland Hills, TX.
How Much Will Debt Settlement Cost?
Whereas debt management plans have regular monthly fees, debt settlement fees are usually charged when each account is paid back.
Generally, settlement companies will charge you around 14-18% of the debt owed – this is a whole lot! This fee is normally spread out over a time period of 12-24 months.
North Richland Hills, TX Debt Settlement Firms
- CIB Group LLC, 8528 Davis Blvd, 76182