You might be able to negotiate a debt settlement for less than you ever imagined, and prevent bankruptcy on top of that. At Utah Debt Consolidation, we can help you find a debt settlement consultant considering your debt profile and the city you live in (Washington), in addition to one or two other factors.
Don’t settle your debts with some dishonest agency. Any legitimate debt negotiator will provide you with some details before you enroll, for instance how much the fees will be for their assistance, how much time until they email or call your lenders, and how much risk is involved.
Be certain that your Washington, UT debt settlement service is trustworthy. Research the following:
- How long have they been in business?
- How many negotiations have they managed?
- How much are their fees?
- What is their score with the Better Business Bureau?
- How effective have they been?
- Are they licensed in UT?
Should any Washington debt settlement services try to charge you upfront fees, avoid them, as this is not okay!
Negatives of Debt Settlement: Washington, UT
A debt settlement program offers a few significant advantages:
- Debt Reduced by 20-60%
- Huge Interest Savings
- Quick 24-36 Month Timeline
- Adjustable Settlement System
- Substitute for Declaring Bankruptcy
However, it’s an intense succession of negotiations that comes with several challenges and sacrifices.
In debt settlement, you up and quit paying the credit card providers. Rather, you place money into a savings account until you have enough money to pay the settlement arranged by your Washington debt settlement firm. Unfortunately, your credit score gets worse and worse. Additionally, the collection agency calls probably won’t get any better. In keeping with relatively recent FTC policies, your savings account should be yours to manage, no matter the results of your debt settlement, and it should be FDIC-insured.
If you are carrying $10,000 of debt, can no longer make your payments, and would rather be debt free than have favorable credit, debt settlement might be the right solution.
If you meet these criteria, it’s not just you – 856 Washington residents carry at least this much debt.
Individuals who have debt to income ratios of 50% or more are ideal candidates for debt relief, whether it be settlement or consolidation. The optimal ratio is 36%. The average income in Washington, UT, is $36,743 per year, or $3,062 every month. This means a typical resident of Washington ought to spend a maximum of $1,102 in credit card, mortgage/rent, and car/college loan repayments. Sadly, a lot of us have to pay over $1,562 each and every month. These borrowers should explore debt relief solutions of some kind or another.
Washington Debt Settlement vs Consolidation
Both debt settlement and consolidation have the advantage of a consolidated payment per month, but the commonalities stop there. Debt settlement programs lead to a decrease in what you owe, whereas consolidation or management won’t.
You continue to repay your lenders monthly under a debt management plan, meaning your credit rating is not impacted as much as it can be during a debt settlement, during which you quit repaying your creditors. Then again, a debt management plan generally takes longer and in the end you will pay off every cent you owe.
Read this article to learn more about credit counseling in Washington, UT.
Paying Your Washington Debt Settlement Service
No debt settlement specialists in Washington should make you pay before they settle your debts. Any reputable debt settlement service in Washington, UT, will only charge a fee after a balance is repaid. Other debt relief solutions generally entail regular payments.
Most settlement companies charge a percentage of the amount you want reduced, often up to 15 percent. Though you should not be forced to pay unless they actually reduce your debt.
Debt Settlement Attorneys: Washington, UT
You may stumble upon law firms that provide debt negotiation assistance on behalf of their clients. Whereas the majority of debt settlement companies don’t require a monthly fee, the majority of attorneys do. The problem is that they get paid a percentage of debt reduction amount: one-third. As you expected, this is more expensive than the 15-20% you will be asked to pay a debt settlement firm.
Washington (UT) Debt Settlement Firms
- Debt Settlement Company? Contact us for a Free Listing!