When you are trying to cut down your debt by 20-60%, debt settlement is one very popular option. At Texas Debt Consolidation, we can get you in touch with a debt settlement firm in Weslaco taking into account your debt profile and the city where you live, coupled with one or two additional factors. Isn’t it time to get rid of debt?
Don’t entrust your debt settlement to some unethical agency. Any honest debt settlement company in Weslaco, TX, will give you some specifics prior to signing up. They spell out their fees, when they plan to get started, and the risks you will be facing. Make sure to find out if your Weslaco, TX debt settlement consultant is legitimate. Find out how long they’ve been settling debt, how much debt they have settled, what their success rate is, how much they charge, and you should make sure they are registered settle debts in the state of Texas.
Downsides to Debt Settlement in Weslaco, TX
Debt settlement services offer up some substantial benefits:
- 20-60% Decrease in Debt
- Significant Savings in Interest
- Quick 2-3 Year Timeline
- Convenient Payment Plan
- Alternative to Declaring Bankruptcy
However, it has more negatives than other types of debt relief. How much could a debt settlement firm in Weslaco, TX, help you save? Learn today!
The solutions provided by debt settlement firms in Weslaco, TX, do have their drawbacks:
- It’s very bad for your credit score.
- Debt never completely paid back.
- Debt keeps building during negotiations.
- Calls from collectors might not decrease.
- Debt that you don’t pay is taxable.
- Could be half a year before negotiations end
Remember, creditors are able to take legal action to help them go after an outstanding debt. The chance of your creditors filing suit is greater simply because you stop paying your creditors on a monthly basis.
Contrary to public opinion, local Weslaco debt settlement attorney doesn’t have the power to keep a credit card company or lender from going to court.
Statute of Limitations for Credit Card Debt: TX
In Texas, credit card companies have 4 years to take legal action for debt.
If you are carrying $10,000 of debt, are unable to pay your bills, and would rather be debt free than have a favorable credit record, credit card debt settlement might be viable alternative to declaring yourself bankrupt.
If you have $10,000 of credit card debt, it’s not just you. We estimate that 5,084 of Weslaco’s 51,320 residents are burdened by at least this much debt.
Calculating Your Debt-to-Income Ratio
If your debt-to-income ratio is more than 50%, then debt settlement or consolidation is probably a good idea.
In a nutshell, if you are allocating over half of your income to credit cards, rent/mortgage, and/or loans, you need to speak with a debt settlement expert in Weslaco, TX. Given that the average income in Weslaco is $1,026 each month, this is just $513. You really should have a ratio that’s nearer to 36 percent. In Weslaco, this is $369, typically.
Managing vs Negotiating Your Debt in Weslaco (TX)
Are you trying to decide between credit card debt settlement and consolidation?
While debt settlement leads to reduced debt, management isn’t going to.
You continue to repay your credit card issuers each and every month as part of a debt management plan. This means your credit score is not damaged nearly as badly as it can be during a debt settlement. After all, with credit card settlement you quit paying back your creditors. Having said that, consumer credit counseling generally takes longer and in the end you’re going to pay every cent you owe.
Visit here for more information about credit counseling in Weslaco, TX.
While debt management programs have basic monthly fees, debt settlement expenses are usually applied after each balance is paid off. Normally, settlement companies charge you a percentage of the debt you want reduced, often as much as 15 percent. This service charge will typically be assessed over a time period of 1-2 years.
A handful of lawyers in Weslaco, TX, may well provide debt settlement for their clients. A good number of attorneys will ask you for a retainer, typically 5% of your debt, not to mention a monthly fee. The problem is that they will also take a significant slice of the forgiven debt. The proportion differs, but it’s typically roughly 30 percent. Normally, this ends up being more costly than a debt settlement company.
- Tex Star Credit Solutions, 810 S Texas Blvd, 78596