If you want to find alternatives to bankruptcy whereby you pay back a part of your debts to your creditors, debt settlement is one very popular solution. We can match you to a debt settlement expert – today – who will:
- Make a deal with your card issuers.
- Get a written agreement for debt reduction.
- Create a plan to pay off what you owe in 2-4 years.
The vast majority of firms offer the following programs:
- Visa or Mastercard Settlement
- Healthcare Bill Settlement
- Payday Loan Settlement
How Much of My Debt Can Be Settled?
Let’s consider a few common goals:
|Original Debt||New Debt Low||New Debt High|
There are not any guarantees that you’ll get the same results. These are simply general goals.
How Will Debt Settlement Affect My Credit Report?
Though debt settlement may lead to substantial reduction in what you owe, it involves depositing funds into a bank account each and every month instead of repaying your credit card balances. When you have enough money saved, you give them the negotiated sum. Not surprisingly, settling your debts in this fashion will be detrimental to your credit ratings.
During debt settlement, you simply quit making payments to the credit card providers. In lieu, you deposit money into a savings account until you’ve got a sufficient amount to pay the settlement arranged by your Lynnwood debt settlement firm. Regrettably, your FICO score will get lower and lower. However, declaring bankruptcy would crush your credit rating as well. In keeping with fairly new FTC regulations, this savings, or “special purpose” account has to be under your complete control, no matter the results of your credit card settlement. It also must be FDIC-insured.
Risk of a Lawsuit
Keep in mind, credit card companies do have the right to file a lawsuit against an individual to go after an upaid debt. There is a bit more chance of getting sued given that you stop repaying your creditors.
WA SOL as Regards Debt
In Washington, creditors have 6 years to file a suit for debt that’s owed them.
Minimum Debt Settlement Criteria in Lynnwood, WA
Debt settlement may be a good option if you would reply yes to these questions:
- Are you considering going bankrupt?
- Are you carrying at least $10,000 in debt?
- Are you willing to endure subprime credit if it means you can reduce your debt?
If you have $10,000 of credit card debt, don’t fret – 7,700 of Lynnwood’s 77,731 residents are trying to repay at least $10,000 of credit card debt.
What’s Your Debt to Income Ratio?
Consumers with debt to income ratios of 50% or higher are perfect prospects for debt relief in some form, whether it’s settlement or consolidation.
To be able to work out your DTI, it’s essential to consider how much debt you owe on a monthly basis. The following is a table which shows debt severity based on a monthly income of $2,081 (the Lynnwood average).
|Income||36% DTI – Excellent||43% DTI – Acceptable||50% DTI – Serious|
Consolidating vs Settling Your Debt: Lynnwood (WA)
Are you trying to decide between credit card settlement and consolidation? All of these are methods of debt relief. Settlement is special in that it brings about a proper decline in the amount owed. Other methods of relieving debt – debt consolidation, management, counseling – cause nearly as much trouble for your FICO scores in the long run, but they are long-term remedies in which you pay all of your debt.
Whereas debt management programs have ongoing monthly fees, debt settlement costs are typically assessed when each account is settled.
Nearly all settlement companies will charge you around 14-18 percent of what you owe – which is a big chunk of change! Generally speaking, they’re prohibited by the FTC from charging you until a balance has been paid off.
Debt Settlement Attorneys: Lynnwood, WA
Some law firms in Lynnwood, WA, may well offer debt settlement assistance on behalf of their clients. Whereas the majority of debt settlement companies do not impose a monthly fee, the majority of attorneys do. That sounds fine, except that they also receive a big chunk of debt reduction amount. . The percentage? Normally 30 percent. As you can imagine, ultimately this is less affordable than the 15-20% charged by a debt settlement agency.
Debt Settlement Firms in Lynnwood (WA)
- Atlas Mortgages- Dennis Bennett, 4630 200th St SW, 98036