Just can’t pay off all the money you owe? Debt settlement is supposed to help you trim down how much you owe drastically. At WA Debt Settlement, we can match you with a debt settlement consultant in Olympia, WA – right now – based on your debt profile and the town you live in, together with a few other factors.
Around 17,010 of Olympia’s 171,719 residents need to eliminate over $10,000 of debt. Debt settlement could potentially reduce your debt to $4000-$8000.
Debts Which Can Be Settled
The large majority of agencies provide the following debt settlement programs in Olympia, WA:
- Visa or Mastercard Settlement
- Hospital Bills Settlement
- Payday Loan Settlement
Olympia Debt Settlement – The Process
Creditors in Olympia allow settlement arrangements because if a consumer files for bankruptcy, they will get next to nothing. First of all, your Olympia debt negotiator will begin negotiations with your financial institutions on your behalf. If a sum is approved, you will either pay the sum if you have the cash ready, or begin putting money aside to repay what you now owe. Your agency should not charge you until the following prerequisites have been met:
- At least one balance has been negotiated.
- You’ve been given a written agreement.
Will Debt Settlement Impact My Credit Reports?
Often called debt negotation in Olympia, debt settlement gives you several highly-touted benefits:
- Debt Decreased by 20-60%
- Big Savings in Interest
- Short 3-5 Year Timeline
- Variable Payment Scheme
- Alternative to Bankruptcy
Having said that, it has more negatives than some other sorts of debt relief.
During debt settlement, you completely cease making payments to the credit card issuers. Rather, you put money into a savings account until you’ve got a sufficient amount to pay the amount worked out by your Olympia debt settlement agency. Unfortunately, your credit score will get lower and lower. Keep in mind, declaring yourself bankrupt would kill your credit scores as well. According to relatively new FTC guidelines, this savings account has to be yours to manage, regardless of the outcome of your credit card settlement, and it must be FDIC-insured.
As a resident of Olympia, you should understand the Washington statute of limitations when it comes to debt:
- Statute of limitations: 6 years
- State Statute: 4.16.005
- More Information: apps.leg.wa.gov/RCW/default.aspx?cite=4.16.005
Minimum Requirements for Debt Settlement: Olympia, WA
Suitable Olympia debt settlement candidates owe no less than $10K in debt, are considering declaring bankrupty, and can no longer afford the minimum payments on their credit cards on a monthly basis.
If you fall into this category, you are not alone. It’s estimated that 17,010 of Olympia’s 171,719 residents are carrying at least $10,000 of credit card debt.
If your debt-to-income ratio is 50% or more, then legal debt relief is needed.
To be able to figure out your debt to income ratio, you should understand your monthly debt, which includes costs such as:
- Rent or Mortgage
- Auto and Student Loans
- Child Support or Alimony
- Credit Card Payments
Here is a chart showing varying DTI levels based on a monthly income of $2,011 (the Olympia average).
|Income||36% DTI – Recommended||43% DTI – Acceptable||50% DTI – Problematic|
Olympia Debt Settlement vs Consolidation
Credit card settlement and consolidation/management each have their own advantages. Most debt management programs lead to lower rates of interest for your credit cards and/or payday loans, but zero forgiveness of pre-existing debt is involved. You continue to pay off your loan providers each month under a debt management plan, meaning your credit score is not impacted as drastically as it is after a debt settlement. On the other hand, consumer credit counseling nearly always takes longer and in time you will pay your debt in full. For additional information, go here: debt consolidation in Olympia.
How Debt Reduction Companies Are Compensated
Being the most dramatic debt relief solution at your disposal, debt settlement is generally not cheap. Generally, settlement agencies will charge you roughly 20% of the amount you owe – this is a lot! Typically they’re restricted by law from making you pay until an account has been repaid.
Debt Settlement Lawyers in Olympia, WA
You may run into lawyers that offer debt settlement support for their clients. Some attorneys will ask you for some type of retainer, typically 5% of your debt, in addition to a fee every month. The concern is that they will also take a big chunk of the debt they settle. The percentage differs, however it’s commonly around 30 percent. This is usually less affordable than a debt settlement agency.
- Patton Jennie Attorney At Law P S, 2405 Evergreen Park Dr SW, 98502
Debt Collectors: Olympia, WA
- None Listed.