Can’t pay back your credit card debt? Debt settlement can help you reduce your debts significantly.
At WA Debt Settlement, we can connect you with a debt settlement company that helps people in Maple Valley.
Let’s have a look at some common landmarks:
- $10,000 Decreased to $4000-$6000.
- $15,000 Decreased to $6000-$9000.
- $17,500 Lowered to $7000-$10,500.
- $20,000 Lowered to $8000-$12,000.
- $30,000 Reduced to $12,000-$18,000.
- $40,000 Reduced to $16,000-$24,000.
- $45,000 Lowered to $18,000-$27,000.
- $50,000 Lowered to $20,000-$30,000.
These reductions are by no means a guarantee!
According to the FTC, Maple Valley debt settlement firms must provide you with some specifics prior to signing up, such as how much the fees will be for their service, how much time their program takes, and how much risk is involved. Always make sure that your Maple Valley, WA debt settlement service is legitimate. Research how long they’ve been running a business, how much debt they have settled, what their rate of success has been, what their fees are, and whether they’re registered to do business in Washington.
Debt settlement provides a few highly-touted benefits:
- Drastic Reduction in Debt
- Huge Savings in Interest
- Quick 24-48 Month Timeline
- Flexible Payment Structure
- Alternative to Declaring Bankruptcy
But bear in mind, it means putting funds into a savings account month after month as opposed to repaying your credit card balances. When you have enough money saved, you give them the arranged sum. Not surprisingly, settling your debts like this can hurt your credit rating.
Before you commit to debt settlement, there are some things you need to know:
- Hurts your FICO score.
- Debt not 100% repaid.
- Creditors don’t always accept negotiation.
- Debt continues to mount while debt reduction is being negotiated.
- Collections calls may keep coming in.
- Downsides at tax season.
- Might be six months before negotiations conclude
Chances of Legal Action
You’ll want to understand that credit card companies do have the right to file a lawsuit to help them collect a debt. There is a bit more likelihood of a lawsuit. Why is that? Simply because you quit paying your creditors each month.
SOL for Credit Card Debt in Washington
Credit card providers have a limited period of time to file suit for outstanding debt. In Washington, this is 6 years.
Most Maple Valley debt settlement prospects owe no less than $10K of debt, are thinking about declaring bankrupty, and can no longer afford to make the minimums on their credit card bills monthly.
If you have $10,000 of credit card debt, don’t panic. It’s estimated that 2,238 of Maple Valley’s 22,590 residents are living under this much debt.
What’s Your DTI?
Individuals with debt to income ratios of 50% or more are ideal prospects for debt relief, whether it be settlement or consolidation. The best ratio is 30 to 36 percent. In Maple Valley, people make $68,180 each year, or $5,682 each month, which means the average Maple Valley resident should pay out no more than $2,102 in credit card, mortgage, and loan repayments. Unfortunately, many people are shelling out $2,898 or more month after month. These borrowers could benefit from debt relief options, either debt settlement or consolidation.
Maple Valley Debt Settlement vs Consolidation
Debt settlement is often wrongly identified as credit counseling, debt management plans, or consolidating debt. These are totally separate. Most debt management programs give you lower interest levels for your credit cards and/or payday loans. However, there is zero reduction of the balance due.
When it comes to debt management, consolidation, and counseling, your payment per month is combined, but you still pay off the credit card issuers until your debt is fully paid. There is no doubt that this is better for your FICO rating. On the other hand, the only debt savings come from more affordable rates of interest and fees.
How Debt Negotiation Firms Are Compensated
As the most drastic debt relief option available, debt settlement is generally not cheap. Many settlement firms will charge you approximately 20% of your debt – which is a lot! This service charge will normally be spread out over 1-2 years.
Maple Valley, WA Debt Settlement Attorneys
Wondering about debt settlement attorneys in Maple Valley?Hiring an attorney at law may actually be pricier than using the services of a debt settlement consultant. The compensation framework for debt settlement attorneys in Maple Valley tends to be different from that of debt settlement companies. That sounds fine, except that they will also take a percentage of the debt they save you: a third. This is commonly more costly than a debt settlement firm.
Keep in mind that this attorney cannot provide legal counsel they are licensed to practice law in Washington.
- WA Debt Settlement Firm? Contact us!