A qualified The Colony debt negotiator should be able to settle your credit card debt for less than you ever thought possible.
At Texas Debt Consolidation, our aim is to find you a debt settlement company that works with residents of The Colony.
Of the 28,376 residents of The Colony, roughly 2,811 have got $10K or more in debt. We can help you find the The Colony debt relief solution that will put you on the path to financial freedom.
Selecting a Debt Settlement Firm: The Colony (TX)
For legal reasons, The Colony debt settlement services must give you certain specifics before you enroll. They establish their rates, their starting dates, and the hazards associated with debt reduction.
You should make sure your The Colony, TX debt settlement specialist is legit. Research how long they’ve been in operation, how many negotiations they’ve managed, what their rate of success has been, what their prices are, and whether they’re registered to conduct business in the state of Texas.
Disadvantages to Debt Settlement: The Colony, TX
Also referred to as debt negotations in The Colony, debt settlement has some substantial benefits:
- Debt Reduced by 20-60%
- Large Savings in Interest
- Short 2-3 Year Schedule
- Variable Repayment System
- Substitute for Declaring Bankruptcy
However, it has more downsides than some other types of debt relief.
During a debt settlement, you just cease paying the credit card companies. Rather, you put funds into a specific savings account until you have a sufficient amount to pay the settlement worked out by your The Colony debt settlement company. Meanwhile, your FICO rating gets worse and worse. Plus, the collection agency calls may not get any better. According to quite recent FTC rules, this savings, or “special purpose” account has to:
- Be at an FDIC-insured bank.
- Provide you with unfettered withdrawals.
- Not penalize you for withdrawing funds.
Minimum Criteria for Debt Settlement: The Colony, TX
If you are carrying $10,000 of debt, are unable to pay your bills, and would rather eliminate your debt than have a favorable credit record, credit card debt settlement may be viable alternative to declaring yourself bankrupt.
Of the 28,376 residents of The Colony, 2,811 are estimated to carry credit card debts of more than $10,000.
Consumers who have debt to income ratios of 50% or higher are prime candidates for debt relief, whether it’s settlement or consolidation.
Simply put, if you are dedicating over fifty percent of what you make in credit cards, rent, and vehicle loans, you should talk with a debt relief expert. Given that the average income in The Colony is $5,228 every month, this is just $2,614. You really want to shoot for a ratio that’s closer to 36% ($1,882 in The Colony).
Debt settlement is often wrongly identified as consolidation. These are completely separate. Most debt management programs result in reduced interest rates on your credit cards and/or payday loans. However, there is zero reduction of the balance due.
Other methods of relieving debt – for instance debt consolidation, management, and counseling – are much better for your credit score over the long haul, but these are long-term remedies that require repayment of all of your debt.
For more information, visit here: credit counseling in The Colony, TX.
Paying Your The Colony Debt Negotiation Firm
While debt management plans have flat fees each month of $25-40, debt settlement charges are normally charged once each account is settled. Most settlement firms will charge you around 15 percent of the balance due – this is a whole lot! Generally they’ve been forbidden legally from charging you until a debt has been repaid.
The Colony debt settlement attorneys are generally more costly than utilizing a debt settlement agency. Whereas most debt settlement agencies do not charge a fee every month, many lawyers do. The concern is that they get paid a share of the forgiven debt. How much? Frequently one-third. This is usually less affordable than a debt settlement company.
The Colony (TX) Debt Settlement Businesses
- Texas Debt Settlement Company? Contact us to be listed.