Can’t pay back all the money you owe? Debt settlement will help you reduce how much you owe substantially.
Let us help you find a debt settlement consultant – now – who will work to minimize your credit card debt. There are zero commitments, and it’s 100% free.
Finding a Debt Settlement Firm in Layton, UT
Legally, Layton debt settlement specialists must provide you with some details before you enroll:
- Pricing: charges must be completely enumerated.
- Timeline: they have to say when they are going to reach out to your creditors, and the funds you must have saved.
- Risks: they must inform you of the unfavorable effects for your credit rating
Be sure you find out whether or not your Layton, UT debt settlement specialist is an honest one. Verify how long they’ve been running a business, how many clients they’ve handled, what their rate of success has been, how much they charge, and whether they are certified settle credit card and payday loan debts in Utah.
Just remember: no Layton, UT debt negotiation company is allowed to charge fees in advance!
Though debt settlement can bring about substantial debt reduction, it’s a contentious succession of negotiations that includes several pitfalls, costs, and sacrifices.
So that they can leverage the lowest debt reduction possible, your debt settlement firm will probably recommend that you stop trying to repay your creditors. Your money will enter a savings account. After you’ve got enough money to pay the negotiated amount, plus your debt settlement firm’s fee, your debts will be repaid. Meanwhile, your FICO rating will get lower and lower. Of course, declaring yourself bankrupt would wreck your credit scores too. According to quite recent FTC guidelines, your savings, or “special purpose” account has to be yours to manage, irrespective of the outcome of your credit card settlement, and it has to be FDIC-insured.
Keep in mind that banking institutions do have the right to file a suit against an individual to help them collect a debt. There is a greater chance of being sued. Why is that? Mainly because you stop paying your creditors each and every month.
If you owe $10,000 in credit card or unsecured loan debt, are unable to repay what you owe, and would rather be debt free than have a favorable credit record, credit card settlement might be a good option.
If you fall into this category, don’t be discouraged. It’s estimated that 5,975 Layton residents are living with at least $10,000 of credit card debt.
Folks who have debt to income ratios of 50% or more are perfect candidates for debt relief, whether it be settlement or consolidation. The optimal ratio? 30 to 36%. In Layton, people make $59,156 per annum, or $4,930 every month. This means the average resident of Layton should spend about $1,824 in credit card, mortgage, and loan repayments. Regrettably, many Layton residents are paying more than $2,514 each and every month. These consumers could use debt relief of some kind or another.
Debt settlement and consolidation/management each have their advantages and disadvantages. These are all strategies for debt relief. Debt settlement is unique in that it brings about a real decrease in the balance due.
You repay your loan companies monthly under credit counseling, which means your credit rating isn’t harmed nearly as much as it is during debt negotiations, during which you quit repaying your debt. Then again, credit counseling generally takes longer and eventually you will pay back every cent you owe.
Go here to find out more about credit counseling in Layton, UT.
While debt management plans have regular monthly fees of $25-40, debt settlement charges are usually applied after each balance is settled. Most settlement firms charge a percentage of the debt you want reduced, often about 15 percent. Though you should not need to pay unless they actually settle your debt.
Layton (UT) Debt Settlement Firms
- Money Matters, 1604 Church St, 84041