Tips On Debt Settlement in Adair, Iowa
It cannot be expressed enough how dire it is that you to know the following information regarding bankruptcy vs. debt settlement for Adair, Iowa.
Best Time To Start Looking For Debt Settlement Services in Adair, Iowa
Debt settlement should not be your first option. It is to use as a safety net after all other options have been exhausted and you feel there is nothing left to do but file for bankruptcy. This would be a good time to start researching the best debt settlement companies in Adair, Iowa.
People become worried and scared anytime their income (even a small amount of it) is not there anymore, causing them to make some bad choices. Only after the bills start to piling-up do they realize the seriousness of their wrong decisions.
This is when they should be thinking about what their options are. However, it does not take long to run out of those options. When you are down to bankruptcy being your last option, that is the right time to start looking for a good debt settlement company.
What you can expect from a good settlement company
- A good settlement company will write their policies so that you can easily understand them.
- Will give you estimates of their intended goals, but they will never make guarantees.
- They are willing to disclose the costs and the fees for the programs prior to signing anything.
- They will give a good faith estimate for the amount of time they are going to wait until they negotiate with your creditors.
- They will let you pre-approve all of their offers to creditors.
- Let you know the amount that needs to be saved prior to making any offers.
What Can Debt Settlement In Adair, Iowa Do For Me?
Have you somehow fallen behind on the bills? Are you finding it difficult to get caught back up? If so, have you tried all the other means of resource at hand and are now out of options? If this is the case, and the only other option right now and to file bankruptcy, then now is the time to begin reaching debt settlement companies in Adair, Iowa.
Once realizing that your bills are only piling up, and they are definitely not going away, you are probably thinking about going bankrupt, as it is the only option left. Actually, it is not the last option available, and before filing bankruptcy, you should first contact a debt settlement company. You will be glad that you did!
Unlike bankruptcy, which is not only going to be on your credit record for 10 years but will be a constant reminder for the rest of your life. It does this by hanging over your head in whatever you do. All applications in today’s modern world that you are going to want or need to fill out will have the question on them “Have you ever filed bankruptcy”? Now one could lie about it on the application, but if and when they get caught, you will be arrested for fraud, have to pay a fine (a large fine at that), and you may even spend time in jail. If you think for one minute that this is not true, just ask some of the people who have lied about it and what happened when they were caught!
However, a debt settlement program can help you settle your debt(s), occasionally in less than 1 year, but on the average between 2-3 years. Also, debt settlement will be removed from your record once it has been settled and will not hang over your head for the rest of your life, and will not leave behind a paper trail, so no one has to know about it.
Debt settlement will be beneficial to you, only that will mostly be noticeable after your debt has been settled. It will be more acceptable to those who see your credit report. It is not going to be a matter of public record. It leaves no trail, meaning that others are not going to know anything about it unless of course, you tell them. And it is not going to make any negative impacts on the rest of your life.
Why Would Someone Need To Consider Debt Settlement?
If a person has a streak of hard work and no longer has enough income coming in to cover all the bills each month, they begin to pile up. All other resources are out the window. Are you asking yourself what you should do? Should you file for bankruptcy? Bankruptcy should only be a source to use if it is the only option left.
Avoid bankruptcy – As stated above, it is definitely something to be used when there is nothing else left. For instance, if you apply for debt settlement and you are told that you do not qualify or that you’re not eligible, then bankruptcy would be your last option, so you take it.
With debt settlement, you might get to hang on to those credit cards – Imagine being able to continue using your credit card(s). Of course, they shouldn’t be used except in an emergency. Appreciating the fact that they are letting you hang on to the card even though you owe them a lot of money is saying something, don’t you think?
What Damages Can Debt Settlement Programs Have On Credit Scores?
While it does have an impact on the credit score, debt settlement is nowhere near the damage of bankruptcy.
- It has its drawbacks – Negotiations may not work, your creditor(s) may want full payment of the amount you owe. This does not happen too often, but it does happen sometimes.
- Stained for 7 years – It stains both your credit score and your credit report for 7 years by showing your account to be settled or “not paid in full.” During this time, anyone who looks at your credit report will be able to see it. When they do, it makes them concerned about whether or not they are going to be too much of a risk factor.
- A decrease in your credit score – Your credit could be reduced as much as 100-125 points.
- Meantime – The high-interest rate continues to add up, and so does the late fees. These can become extremely high.
Debt Settlement Has Its Advantages and Disadvantages
Do you know the advantages and disadvantages of both debt settlement and bankruptcy? There are a lot of people who do not know the difference between the two.
- According to the Federal Trade Commission (FTC), there are a lot of consumers who find it difficult to make their monthly installments going to their escrow accounts and they never get enough (if any) for the settlement company to get their debts paid off, if any of them. These people are referred to as debt settlement dropouts.
- Meantime, the interest and late fees continue to pile up, and the totals are alarming.
- The debt settlement companies will not be able to guarantee that your creditors will accept any of their offers.
- Your credit score can decrease as much as 100 to 125 points.
- Unfortunately, there will be a stain on your credit score as well as your credit report for 7 years.
What Is the Total That a Debt Settlement Will Cost Me?
Find out before ever signing up with a debt settlement company about any hidden fees. Some debt settlement companies will tell you later on about something else you owe them for. These are called hidden fees or fees you were not told about initially. Do not let yourself be surprised halfway through settling your debt. Later, they might offer a lower monthly payment and/or reduce the interest rate if you agree to take an extension on the payment period. This extension on the payment timeframe was not mentioned when you asked about your total cost and any hidden fees.
Not counting any hidden fees or the application fee, we can use an example of a 10% service fee based on total debt at the time of applying. For example, if the total debt was $30,000, the fee would be $3,000. If they reduce debt by 40%, you would pay back $18,000, plus the $3,000 fee. The total of $21,000 is divided over your repayment period.
Choosing The Debt Settlement Company That Is Right For You in Adair, Iowa
Choosing the right debt settlement company for you begins with finding the best one out there. These are the ones that have a history of great customer service, are straight with you about their fees, and are represented by a reputable place such as the AFCC.
To protect yourself the best, you should do the research on each debt settlement company individually that you are interested in. This is to keep you from being scammed.
It has been recommended by the FTC to look out for various features each company provides in order to recognize if it is legitimate. This is to be certain that the company makes its fees known upfront and that they are professional and fair.
Keep in mind debt settlement companies are under no obligation (legally) to accept any offers from the debt settlement company, which means they cannot, in all honesty, give you any guarantees.
The FTC warns you to make a note on the companies that do not mind giving you the information you’re asking for and of the ones that do not. Such as:
- Your account administrator is not in any way a part of the debt settlement services.
- The money in your escrow account belongs to you, and so does the interest that is earned from it.
