Debt settlement is perhaps the most radical of all the debt relief strategies.
At Debt Relief Arizona, we can find you a debt settlement expert according to what you owe and where you live, combined with a couple additional factors.
Of the 163,844 residents of Tempe, approximately 16,230 owe at least $10,000 to their creditors. Discover how much Tempe debt settlement could save you.
Don’t entrust your debt settlement to some underhanded firm. Any good debt negotiator will provide you with the following details before getting started:
- Charges: all fees should be fully described.
- Duration: they must tell you when they are going to reach out to the credit card issuers, along with how much money you must have saved.
- Dangers: they must tell you about the adverse repercussions of choosing not to pay your creditors
You should make sure your Tempe debt settlement firm is legitimate. Research how long they’ve been settling debt, how many cases they’ve managed, what their success rate is, what their fees are, and be sure they are qualified negotiate debt in Arizona.
Debt Settlement Disadvantages in Tempe (AZ)
Debt settlement is the only option that lowers the principal. But you should talk to a qualified debt expert before moving forward.
Negotiating your debts in this fashion does have some disadvantages. For example, your creditors may not wish to negotiate. In addition, debt negotiation will be damaging to your FICO rating down the road, unlike paying off your debt with a debt consolidation loan. Ultimately, your creditors will not be paid in full. Also, your collection calls may not grow less frequent greatly, as they would with some other debt relief options.
Debt Settlement and Litigation
You ought to be aware that banking institutions do have the right to file suit against an individual to collect a debt. With debt settlement, the risk of your creditors taking legal action increases simply because you quit paying your creditors.
A a debt settlement attorney in Tempe, AZ, can’t stop a creditor from suing. They may or may not be able to represent you in case of litigation.
In Arizona, creditors have 6 years to bring you to court for debt.
For you to qualify for a credit card settlement program in Tempe, AZ, you generally need:
- $10,000 in Debt
- $300 Each Month For Payments
If you fall into this category, you’re not alone. It’s estimated that 16,230 Tempe residents owe this much debt.
Calculating Your Debt-to-Income Ratio
If you have a debt-to-income (DTI) of more than 50%, then professional debt relief is worth exploring.
Let’s say you earn $2,529.00 each month, which is the average in Tempe. If you spend no more than $910 for credit cards, rent/mortgage, and any sort of loans, this is a healthy debt load (36%). If you are having to spend $936-$1,062 (37-42%), you really should cut down on how much you’re spending. If you spend $1,087 to $1,265 (43-50%), you are about to experience economic collapse, and if are spending more than $1,290, you are in trouble and really should request expert debt advice.
A lot of people mistake credit card settlement and consolidation. They are totally different.
While debt settlement results in reduced debt, management and consolidation do not.
When it comes to debt management, consolidation, and counseling, your payment amount is minimized. However, keep paying down your creditors until your debts are paid off. This is is more favorable for your credit ratings. Then again, the only debt savings are derived from reduced interest rates and late fees.
Read this article to read more about credit counseling in Tempe.
How Debt Settlement Services Get Compensated
No debt settlement firms in Tempe are allowed to bill you in advance. Any legitimate debt settlement service in Tempe, AZ, will only charge a fee when a credit card is settled. Other debt relief solutions ordinarily entail flat monthly payments.
Normally, settlement agencies charge a percentage of the balance you want reduced, often up to 15%. This fee is generally assessed over a time period of 12-24 months.
Tempe Debt Settlement: Attorneys vs Companies
You might come across lawyers that offer debt negotiation assistance. The fee system for Tempe debt settlement attorneys is different. The problem is that they are entitled to a share of the debt they settle, often 30%. Typically, this ultimately ends up being more costly than the flat rate you will be asked to pay a debt settlement service.
Debt Settlement Businesses: Tempe (AZ)
- Bankruptcy Preparers.com, 2131 E Broadway Rd, #27, 85282
- Credit Solutions, 2101 E Broadway Rd, 85282
- Debt-Free America, 2101 E Broadway Rd, #12, 85282
- Doney & Associates Bankruptcy Information Line, 1907 E Broadway Rd, 85282
- Consumer Credit Counseling, 950 W Elliot Rd, 85284
- Consumer Credit Counseling Services, 950 W Elliot Rd, #122, 85284
- Farm Credit Services, 3003 S Fair Ln, 85282
- Green Path Inc, 401 W Baseline Rd, 85283
- National Credit Repair, 1001 E Warner Rd, #104, 85284
- National Home Alliance, 4525 S Lakeshore Dr, 85282
- Pyramid Mortgage Services, 1000 E Apache Blvd, #215, 85281
- Regency Credit- LLC., 1232 W Broadway Rd, 85282
- My Arizona Short Sale, 60 E Rio Salado Pky, #900, 85281
- Arizona Bankruptcy Lawyer- Harmon Law Office, 700 E Baseline Rd, 85283
- Freedom Debt Rellief, 4940 S Wendler Dr, #101, 85282
- A Plus Credit Solutions, 1730 E Warner Rd, 85284
- Greenpath Debt Solutions, 401 W Baseline Rd, #206, 85283
- Rise Above Debt Relief, 1834 E Baseline Rd, #102, 85283
- Arizona Tax Attorney, CPA, EA Resolute Tax Services IRS Audit Help, 637 S 48th St, #201, 85281
- A American Credit and Debt Counseling Service, 891 S Mill Ave, 85281
- Young, Edwin Regional Manager – Electronic Processing-Az, 1628 E Southern Ave, 85282
- Go Clean Credit, 1204 E Baseline Rd, 85283
- Praxis Credit Consulting, 1414 W Broadway Rd, #228, 85282