Just can’t pay off those pesky credit card balances? Debt settlement may be able to help you cut down your credit card debt substantially. At Debt Consolidation Texas, we can find you a debt settlement agency – this minute – who works with people in Wichita Falls. On top of that: there are no commitments, and it’s free of charge.
Don’t trust your debt settlement to some underhanded company. Virtually any legitimate debt negotiator will provide you with certain specifics before you enroll:
- Compensation: monthly fees have to be carefully explained.
- Timeline: they have to inform you when they’ll get in touch with your creditors, and the funds you must have saved.
- Dangers: they must tell you about the negative repercussions to your credit that come as a result of not paying your creditors
You’ll want to determine if your Wichita Falls debt settlement specialist is an honest one. Verify how many years they have been in business, how many clients they’ve handled, what their rate of success has been, how much they charge, and be certain they are certified to conduct business in Texas.
There are telltale warning signs of services to stay away from. For instance, if any Wichita Falls, TX, debt settlement companies try to charge you fees before they settle your debt, dump them, as this is predatory!
Debt settlement services have some well-known advantages:
- Significant Debt Reduction
- Significant Savings in Interest
- Short 2-3 Year Schedule
- Flexible Repayment Scheme
- Substitute for Declaring Bankruptcy
However, it means placing your money into a savings account each month instead of paying back your credit card bills. When enough has been saved you pay them the settlement amount. As you can imagine, settling your debts like this will hurt your credit scores. Is debt settlement the right choice? Learn more now!
So as to leverage the lowest reduction in debt possible, your debt settlement company will probably have you quit paying back your creditors. Your funds will go into a checking account. When you’ve got enough money to pay the arranged settlement, your debts will be paid back. For the time being, your credit rating worsens because you’re no longer making your payments. Needless to say, filing for bankruptcy would wreck your credit ratings too. In accordance with 2010 FTC rules, your savings, or “special purpose” account has to be under your complete control, no matter the results of your debt negotiations. It also has to be FDIC-insured.
You should understand that banking institutions do have the right to take legal action in order to go after a past debt. With debt settlement, the likelihood of your creditors taking legal action rises given that you quit repaying them regularly. A a debt settlement attorney in Wichita Falls, TX, can’t stop a lawsuit from a creditor who is pursuing the debt. If you’ve got a local Wichita Falls debt settlement attorney, it’s likely they can handle your case.
TX Statute of Limitations on Debt
As a resident of Wichita Falls, this is what you should know about the Texas statute of limitations for debt:
- Statute of Limitations: 4 years
- State Law: 16.004
- Addiitional Information: www.statutes.legis.state.tx.us/Docs/CP/htm/CP.16.htm#16.004
How do you know if debt settlement is worth pursuing?
- Are you considering going bankrupt?
- Do you have at least $10,000 in debt?
- Can you put up with a bad credit score?
If you fall into this category, don’t fret – 10,766 of Wichita Falls’s 108,682 residents are carrying at least $10,000 of credit card debt.
People who’ve got debt to income ratios of 50% or more are excellent candidates for debt relief in some form or another, whether it’s settlement or consolidation.
In a nutshell, if you’re dedicating over 50 percent of your pay to credit cards, home loan, and/or vehicle loans, you have to talk to a debt relief professional. Given that the average income in Wichita Falls is $2,549 per month, this is just $1,275. You actually want to aim for a ratio of somewhere around 36% ($918 in Wichita Falls).
Settling your debt and simply consolidating it are two distinct options. These are all methods of debt relief. Debt reduction is special in that it leads to a total reduction in the amount owed.
Some forms of debt relief – debt consolidation, management, and counseling – are much better for your credit rating over time. However, these are long term remedies in which you repay everything you owe. Read this article for more information about debt consolidation in Wichita Falls.
Being the most drastic debt relief option at your disposal, debt settlement is generally the most expensive.
Normally, settlement agencies will charge you about 20% of what you owe – which is significant! This service charge will typically be assessed over a time period of 12-24 months.
- Law Office of Gregory A Ross P C, 4245 Kemp Blvd, #308, 76308
- Consumer Credit Counseling Service, 4210 Kell Blvd, 76309
- White, Monte J – Monte J White Law Offices, 1106 Brook Ave, 76301