Debt Settlement Solutions in Holton, Kansas
It is becoming more difficult to cover our monthly rent, the food we eat, and the necessities in general, with interest rates continuing to increase. The information that follows is important things you need to understand when it comes to debt settlement options in Holton, Kansas.
Credit card bills are not the only reason for people to need debt settlement; they can also be from unexpected medical bills or co-pays and deductions that have built up over time. This also includes student loans, home loans, and business loans. There are more people today reaching out to debt settlement services, and unbelievably, debt settlement services are having to refuse a percentage of those seeking their help, depending on their level of consumer debt and their total earnings.
In today’s world, consumers (usually) have the ability to hire a debt settlement company to represent the min calculating their debt payment issues. The ideal candidates for using this type of solution would be those having debts of $10,000 or more. Unsecured debt may include utility bills, credit card debt, student loans, and overdue rent, among others.
What Is the Reason That Consumers Use the Option of Debt Settlement?
What makes consumers opt for debt settlement? It is because they do not want personal bankruptcy hanging over their head for the rest of their life. Filing bankruptcy may stay on your credit records for 10 years, but it will also affect anything you do for as long as you live. For instance, employers now ask if you have ever filed for personal bankruptcy and also include property owners when seeking a place to rent and when applying for credit cards, including other things.
Getting away with not being honest on applications is not easy to do, and when you are caught, you will be guilty of fraud… it may cost you your job, and/or you could end up in jail.
Not everyone chooses the option of debt settlement to pay back their consumer debt. However, as a last resource, it is best to go with debt settlement instead of choosing to file for personal bankruptcy. There are some significantly severe consequences one must face when filing for personal bankruptcy, but by choosing to work out a debt settlement with experienced professionals, you do not have to face those consequences.
A debt settlement will only stay on your credit reports for 7 years, whereas personal bankruptcy is going to be on your credits reports for 10 years, and every time you apply for something after the ten years is up, you will be asked if you have ever filed bankruptcy any time you got to apply for a credit card, a loan, to rent a place to live, making it very possible that you will not be able to own your own home. Seeing that you have filed for personal bankruptcy on your credit report is going to make all the people you have to deal with have unfavorable impressions. What does this mean for you? Let’s say that you finally have the opportunity to land a job position you waited a long time for. However, you will be asked by that employer if you have ever filed for bankruptcy. If you are dishonest about it and they check on it, you would be considered as committing fraud, lose your job position, and may receive jail time.
Bankruptcy will hang over your head, even after it comes off your credit report in 10 years and for the rest of your life. On the other hand, using a debt settlement for paying off the debt means that when it comes off the credit report in 7 years, you will be free to apply for whatever you want, for it will not hang over your head.
The design of debt settlement was intended to be used as a means to help those having financial difficulties be able to repay their consumer debt as a last resort. So, if you find yourself having financial troubles and are honestly unable to pay what you owe, debt settlement can provide you with the right solutions.
It is not about trying to get one over on your creditors, Although chances are that you have probably already given your creditors more than was actually spent on service fees charged and interest (with the high rates they also charge).
Debt Settlement Is the Best Way to Go!
Creditors realize that if a person files for personal bankruptcy, they will more than likely end up not receiving anything that they are owed. This means that they will be willing to negotiate and work with a debt settlement program, then they can count on receiving some of what’s rightfully theirs back. It would be in their best interest to help you keep from going bankrupt.
Using a debt settlement program for repaying your personal debt is going to take less time. Generally, it takes 2 to 4 years to repay the debt with a good debt settlement plan. Occasionally, this can be achieved within 1 year. It would take much longer to pay the debt off normally. However, if you are looking into debt settlement programs, it means it is too late for that.
Filing for personal bankruptcy, debt consolidation plans, or credit counseling plans will take up to 5 years to accomplish. Also, using a debt settlement program will spare you the consequences that come with filing for personal bankruptcy. For instance: debt settlement, unlike bankruptcy, is not going to be a public record.
Yes, others can see that you have filed bankruptcy because it is made a public record. Debt settlement is not harmful to your credit as a bankruptcy. What’s more, though your credit profile is going to show that you are working with a debt settlement program, it is not going to hinder your credit score.
With Debt Settlement, Credit Cards Can Stay Accessible
If you use a debt settlement program, you can continue to use your credit cards unless they have a reason to have access to your credit cards by stating in the debt settlement agreement it is to be restricted. However, this way, you will be able to count on credit cards for emergencies. Keep in mind that using those credit cards kind of defeats the purpose of debt settlement.
Paying Off Your Debt Will Make Managing It Easier
By paying off the debt you owe, you will be able to continue making one monthly payment. This means that you will not have to stress over multiple interest levels with your creditors.
Debt Settlement Will Lower the Interest
That is right; debt settlement will not only cause your monthly payments to be lowered, but it will also decrease the number of your interest rates. Which will put extra cash in your pockets every month.
What Are the Pros and Cons of Debt Settlement?
Using a debt settlement program will throw a few unwanted implications your way. Keep in mind that settlement deals are not always accepted and that you could end up owing the government taxes on your settled debt. On the other hand, if the creditors accept the deal… it is going to make a noticeable difference to your credit standing. You can weigh the pros and cons (advantages and disadvantages)of using a debt settlement program.
Often people will use their vehicle or their home as collateral for the debt settlement program’s financial loans. Which is typically a must in order to receive the loan. The collateral is to assure the services of the debt settlement that they will be compensated just in case you fail to keep up your side of the agreement. Keep in mind that from where you’re standing now, you are not considered very reliable.
Find Out About the Hidden Fees
Despite the fact that debt settlement loans can help with getting a much cheaper rate of interest, there can be hidden fees attached. For instance, for the smallest monthly payment, the payment period will be longer. You could end up paying much more with this longer timeframe.
There May Be Unexpected Taxation Consequences
It depends on your economic situation. It is also possible that the IRS looks at the money you pay a debt settlement company to be relieved your debt as income you have coming in and charge taxes on it. This can happen if your creditors and/or debt settlement company report on their taxes as a settled debt (which then makes it taxable).
How Much Does Debt Solutions Cost?
Along with the small amount charged for their application fee, they take approximately 10-20% out of all the payments they receive from you over a period of time. Let’s say that your financial debt is $20,000; the amount they get will be around $2,000. If you think about it, paying them 10% to get the amount you owe decreased by 50%, you are making a good deal! Those that have previously used debt settlement programs will agree.
Debt Settlement Is a Process of Individual Steps
The first step would be to speak with a debt settlement service provider and get a program going. Next, the debt services will reach out to your creditors for you. If there are collection agencies involved, the debt services usually can get the amount owed decreased by 50%, giving the client an immediate education on their debt. Your debt could be reduced by as much as 40%, being the average but may also be as much as 60%.
Creditors know that it is in their best interest to negotiate and accept the deals. Otherwise, they could end up without getting any of the money owed to them. Even businesses get into dire situations, especially creditors and banks, for they are unaware of what to anticipate. This puts them in a position of going under at any given moment. Creditors realize that people can sometimes struggle to keep up with their financial responsibilities. Just as they realize that they may never see a dime of what is owed them should they choose not to agree with the negotiation.
Keep in mind that when using debt settlement, you will have to put up with the hardships on your credit, and the chances of being able to establish new credit and/or financial loans will be lower for a while. Think long and carefully about your options and always select debt settlement over bankruptcy, but not if you still have other options that could be to your advantage. It is intended for those who have run short on their options and not just a way to get out of paying the total you owe!
Remember to research the status, quality, and value of a debt settlement service prior to dealing directly with them. It is important that they have a high rating in these three areas.
Will Debt Settlement Be Beneficial for You?
Debt settlement hurts and helps your credit at the same time while paying it off. The time it takes to pay off your debt varies between people. For some, it may take less than a year, while others could take two to three years or more. It is also going to take a while to create yourself a new nest egg. The settlement company will communicate with you throughout the ordeal. They could turn out to be a true friend during your financial struggles.
Debt Settlement Companies in Holton, Kansas
Always do your research prior to signing anything with a debt settlement program. This can be done through your state Attorney General as well as with your state’s customer protection agency (such as the Better Business Bureau). This process has been proven to be the most effective for determining if the company has had complaints made against them, along with reading testimonials from others who have used them.
Important Things You Need to Ask Yourself:
- What type of service are they going to provide
- What is the timeframe going to be to reach your goal?
- What the cost of it all is going to be?
- Are they asking for advance fees?
- Are they willing to sit face-to-face to get started (this is the best way)
- Do they only seem interested in communicating with you over the telephone?
Don’t let yourself be fooled by non-profit companies
This is not proof that they are reputable or affordable. Many debt settlement companies attempt to conceal the horrific and expensive fees they intend to charge you!
