Find the Solution That Is Right for You, Debt Settlement Services in Avoca, Iowa
Are your financial debts getting the better of you? Has it become a daily headache for you? Has your electric company been threatening to shut off your electricity because it is also unpaid? That is probably just to name a few of the debts pulling you down, right?
You can get rid of your headache; simply contact a debt settlement company near you.
If you are having financial difficulties to the point that you are barely making ends meet from one month to another and have exhausted all your other options except for filing bankruptcy, it sounds like you should check out what debt settlement in Avoca, Iowa, can do for you.
Debt settlement does not remain on your credit report as long as bankruptcy does either, which is 7 years, whereas bankruptcy will remain for 10 years and still hang over your head until the day you die. Sometimes even longer. However, whenever someone looks at your credit report for 7 years after your debts have been settled, seeing a debt settlement would be much better than seeing a bankruptcy. It shows that you were willing to pay what you owed but just were not able to. Although debt settlement will show on your credit profile for 7 years (bankruptcy will show up for 10 years), debt settlement does not decrease your credit rating like a bankruptcy proceeding will.
Well, you owe it to yourself to put bankruptcy on hold while you look into debt settlement services near the area where you live.
Debt Settlement Can Damage And Benefit Your Credit
In order to accomplish the completion of your debt settlement, here’s the truth: Debt settlement will be a little bit damaging to your credit profile, but only for a short amount of time. That damage will first show up on your credit profile, credit standing, and your credit score. It is going to remain there for others to see for 7 years, whereas bankruptcies remain for 10 years for others to see! The damage to your credit when you are working with a debt settlement program can begin the healing process as soon as your debt(s) have been completely settled and/or paid in full. Which is how it is beneficial to you as well.
For other ways in which debt settlement services can be beneficial to you, refer to the Subheading “What are the benefits of debt settlements?”
What are the advantages of debt settlement?
- The debt can be paid quicker this way, taking 3 to 4 years. However, it is sometimes possible to get your bad debt(s) paid off in under 1 year with a good debt settlement company. Whereas all the other methods may take up to 5 years.
- Debt settlement programs have got your back – They work hard to protect your reputable name by shielding your credit rating. Debt settlement programs keep your credit from being a matter of public record. The answer is “yes”; debt settlement programs are going to show up on your credit profile. On the other hand, it is not going to decrease your credit rating like a bankruptcy proceeding will.
- You may even get to hang on to your credit cards – Which simply means when your paperwork is initially prepared, and your agreement does not specify that you are barred from utilizing your credit cards, you will get to keep them!
- You can have your debt management simplified – Once your bad debt is settled and cleared, you do not need to concern yourself about keeping up with several different monthly payments, for the debt settlement company will still handle all of this for you. You will no longer have to worry each month about several different creditors or their different interest rates. You will only have to be sure to make that one installment each month.
- Your monthly installment and interest rates will be lowered – The debt settlement company will combine all of your debts so that you get a much lower monthly payment and also a lowered interest rate.
- Debt settlement will not follow you around – After your debt settlement program has ended and your debt has been settled, you will not have to worry about it following you around for life. Unlike you would if you had gone ahead and proceeded with filing that bankruptcy. This is because debt settlement is not considered a public matter and does not remain on your credit profile after you settle it.
The Disadvantages of Debt Settlement Programs
There are several damaging disadvantages that come with debt settlement programs.
- Pay attention to any hidden fees – It will be important to pay close attention to anything that may be used as a cover-up on the hidden cost you might be getting charged. For instance, they tell you that they are willing to work with you and lower your monthly installments (including interest charges) if you are willing to take a longer time period in making your monthly installments.
Here’s the thing, even if they lowered your monthly installments (including interest) and made the monthly installments for a longer period of time, chances are, you will be paying back a lot more than if you stayed with the initial time frame (being a shorter amount of time), and the initial monthly installment amounts.
- You might have to pay taxes on your settled debt – Once the debt(s) has been settled (more than likely, each debt would be paid off individually), the collector and/or creditor of those funds will be reporting it to the IRS and sending them out a copy of the same 1099-C they sent you. their return business taxes.
After that has been accomplished, they are supposed to send you a 1099-C, which is for you to send with your personal tax return. The reason for this is since your collector, and/or creditor reported that your debt was settled, the IRS now looks at the settled debt as part of your income.
- If you can’t make your monthly installments – Most debt settlement companies will ask for collateral in order for you to receive the debt settlement program loan. The loan is what gets the debt(s) paid off, and you will then owe the debt settlement services.
The collateral is their insurance, and they will either receive a portion of their funds or they get the collateral that you used. You may have put your home up for this, or vehicle, anything that would be considered as one of your assets.
When collateral is a requirement for a loan, it lets them know how serious you are about repaying the money owed. Of course, using collateral is a big risk to take. If for any reason, you wouldn’t be able to keep up on the installments, but should you, they can forfeit that collateral!
Is Debt Settlement a Scam?
While there are some scams that exist, debt settlement itself is not a scam. It is designed to help all parties involved get something out of it. Creditors get a payoff, debt settlement providers get paid, and consumers reduce their debt.
Although, there are some out there that deceive consumers or straight up try to scam them. A few ways to avoid this is to not provide personal information to anyone you didn’t contact or robocalls. Also, if a company is asking for a large amount upfront or a lump sum before negotiating with creditors, these are red flags.
How to Find a Good Debt Settlement Company in Avoca, Iowa
First, you will need to make a list of several different debt settlement companies in Avoca, Iowa. You can begin doing this by going online and reading several reviews of each company’s previous clients. Make yourself a memo so that you remember to check with your local consumer protection agency and with your state Attorney General; both of these should be able to furnish crucial information about any or all of the settlement companies that interest you by telling you if the company(s) has been registered with any complaints.
Nobody really wants to go through debt settlement; however, it is the preferred option when debt settlement vs. filing bankruptcy. What’s more, it is more favorable to those who check your credit standing, rating, profile, and credit score. Filing bankruptcy has a significantly more serious risk of damaging your credit standing than if you lower your own standards and work with a debt settlement program long enough to settle your debts, and afterward, you will be able to start fresh.
To the contras of what some people think about debt settlement, it was not designed for cheating collectors and/or creditors from all of the amount owed them. In fact, if you calculate all of the money you have already spent on theirs, and add in all the fees for late payments, fees for their service, and then add that to all the high rate of interest you have paid them already, all of that probably adds up to be more than you spent. In this case, them getting even less than half of what they were originally asking is more than they really should get back but let’s try to keep them happy.
The program’s intentions are to help both the collectors and creditors be able to receive a little of their money back and also help you to get your debt(s) cleared! Don’t let the collectors and creditors fool you. They want you to work with a debt settlement company instead of a bankruptcy proceeding.
This is because they know that chances are slim for them to ever see any of their funds should you go with bankruptcy, but when they get that first call from a debt settlement service, they’re so happy on the inside that they are willing to accept a lower offer. By you signing with a debt settlement company, you’re not just helping your own financial status, but you are also helping theirs!
