Nobody wants to declare bankruptcy. A reputable Sequim debt settlement agency can often help.
Let us get you in contact with a debt settlement consultant – this minute – based upon what you owe and the city you live in (Sequim), along with a couple additional factors. Best of all: there are zero obligations, and zero costs.
Approximately 2,134 of Sequim’s 21,547 residents could benefit from debt relief. Find out how much Sequim debt settlement could help you save.
Debt settlement in Sequim might not be rocket science, but it’s best left to a professional. To begin with, your Sequim debt negotiator will negotiate with your credit card companies. Ideally, you would pay the contracted amount as rapidly as you possibly can. However, plenty of debt negotiation plans allow you to pay down this amount over 1-5 years. Of course, you’ll have already reviewed this with your debt specialist. Generally, it is best if you can pay back the amount rather quickly.
You shouldn’t entrust your debt settlement to some underhanded agency. Virtually any honest debt settlement company in Sequim, WA, will give you certain information prior to signing on:
- Fees: charges have to be thoroughly described.
- Timeline: they must inform you when they’re going to reach out to the credit card companies, as well as the funds must be saved.
- Risks: they must explain the adverse consequences for your credit score
You’ll want to determine whether or not your Sequim debt settlement company is trustworthy by checking the following:
- Accreditations: Popular qualifications include TASC and IAPDA.
- Fees: Confirm that the rates they charge are affordable.
- Customer Feedback: Try to find positive evaluations from past customers.
If any debt settlement company in Sequim attempts to charge upfront fees, get away from them.
Sequim Debt Negotiations
Although debt settlement can bring about dramatic forgiveness of your debts, it has more negatives than some other solutions.
Considering debt settlement? There are a few things you should keep in mind. For instance, your credit card companies can refuse to negotiate. Furthermore, debt settlement will be bad for your credit rating in the long run, unlike paying off your debt with a debt consolidation loan. Ultimately, your credit balances won’t be completely repaid. Since debt consolidation requires paying back what you owe every month, collector calls should decrease. As any Sequim debt settlement expert will affirm, this is not the case during a debt negotiation.
Don’t forget, creditors are able to sue you to help them pursue a debt. There is more probability of lawsuits. How come? Because you quit paying them each month.
WA Statute of limitations on Credit Card Debt
Credit card companies have a limited amount of time to file a suit for credit card debt. In Washington, this is 6 years.
Minimum Debt Settlement Criteria: Sequim, WA
In order to be a candidate for a credit card debt settlement program in Sequim, WA, you normally have to have:
- $10,000 in Debt
- $300 Per Month For Payments
If you are one of these individuals, it’s not just you – 2,134 of Sequim’s 21,547 residents owe this much debt.
Income vs Debt in Sequim (WA)
People with debt to income ratios of 50% or higher are excellent candidates for debt relief, either settlement or consolidation.
To be able to determine your debt to income ratio, make sure you establish your monthly debt, which includes costs such as:
- Rent or Mortgage
- Auto and Student Loans
- Child Support Payments and Alimony
- Credit Card Payments
The following is a table depicting debt severity based on a monthly income of $3,116 (the average income in Sequim).
|Income||36% DTI – Excellent||43% DTI – Okay||50% DTI – Severe|
Sequim Debt Settlement vs Credit Counseling
Both debt settlement and consolidation give you just one single payment amount. But the similarities stop there. Debt settlement entails a decrease in the amount you owe, and consolidation or management doesn’t.
You continue to repay your creditors every month during credit counseling. That means your credit rating is not affected as badly as it is during a debt settlement. Then again, debt consolidation nearly always takes longer and in time you’re going to repay your creditors in full.
For more details, go there: debt consolidation in Sequim, WA.
Fee Structure for Debt Settlement
Whereas debt management plans have ongoing fees each month of $25 to 40, debt settlement charges are generally applied once each balance is repaid.
Normally, settlement firms charge a percentage of the balance you want settled, often around 15%. In most cases, they are forbidden legally from assessing a fee until an account has been repaid.
- WA Debt Settlement Firm? Contact us!