Want to scale down the amount of your debt to 40-80% of how much you borrowed? Working with a good debt settlement service in Orem, UT, may be worth exploring.
Let us put you in contact with a debt settlement expert – this minute – that’s right for you.
Debt settlement, is it the right choice? Learn more today!
Choosing a Debt Settlement Company: Orem (UT)
According to the FTC, Orem debt settlement companies have to disclose the following specifics before you get started:
- Charges: all fees should be thoroughly enumerated.
- Schedule: they have to tell you when they are going to reach out to the credit card providers, and the funds you must have saved.
- Dangers: they have to tell you about the adverse implications to your credit that come as a result of not paying your creditors
You should make sure your Orem, UT debt settlement consultant is legit by finding out how many years they’ve been settling debt, how much debt they’ve managed, what their rate of success has been, how much they cost, and ensure they’re qualified to negotiate date in Utah.
Orem Debt Negotiations
Debt settlement is the only solution that actually results in a reduction in the original amount owed. But it dramatically affects your credit rating. For that reason, you need to be 100% confident that it’s an appropriate option to get out of debt.
About 8,375 of Orem’s 84,544 residents are in need of debt relief. Debt settlement could potentially reduce your debt to $4000-$8000.
Enthusiastic about debt settlement? Hang on. There are some things you need to understand. Firstly, your creditors can decline to negotiate. Also, settling your debt will be bad for your credit ratings in the end, unlike paying off your debt with a secured Orem debt consolidation loan, as your credit card debt will not be completely paid back. Furthermore, your collection calls may not be reduced significantly. Debt you no longer owe can be taxed.
Debt settlement might be worthwhile if you would answer yes to the following questions:
- Have you been entertaining the idea of going bankrupt?
- Are you carrying at least $10,000 in debt?
- Are you comfortable with unfavorable credit ratings if it helps you reduce your debt?
If you are one of these individuals, you’re not alone – 8,375 Orem residents carry at least $10,000 of credit card debt.
Calculating Your Debt-to-Income Ratio
Your debt specialists will consider your debt to income ratio (DTI). The ideal ratio? 36 percent. The average income in Orem, UT, is $37,405 a year, or $3,117 per month. That means a typical resident of Orem should spend about $1,153 in credit card, mortgage/rent, and loan repayments, but a lot of us are paying over $1,559 month after month. Not surprisingly, these borrowers could benefit from debt relief solutions of some type or another.
Orem Debt Settlement vs Credit Counseling
Settling your debts and consolidating them are two separate methods. Almost all debt management plans offer up less expensive rates of interest for your credit cards and/or payday loans, but zero decrease in current debt is involved.
With debt management, consolidation, and counseling, your payment per month is minimized and continue paying off your creditors until your debts are fully paid. It is obvious that this is better for your credit ratings, but the only debt savings come from lowered rates of interest and fees.
Check here to find out more about debt consolidation in Orem, UT.
No debt settlement companies in Orem should bill you before they settle your debts. Any reputable debt settlement firm in Orem, UT, will only charge a fee once each account is paid back. Most debt relief solutions ordinarily call for flat monthly fees.
The vast majority of settlement agencies will charge you approximately 14-18% of the amount you owe – which is a big chunk of change! This fee will typically be spread out over a period of 12-24 months.
- Financial Freedom International, 472 W 800 N, 84057
- A Debt Free Consumer, 380 E 720 N, 84057