You don’t want to declare bankruptcy. A trustworthy Winslow debt settlement agency may be able to give you a different option. At Debt Relief AZ, our mission is to help you find a debt settlement expert in Winslow, AZ – today – that’s best-suited for your needs. What’s even better: there are zero commitments, and zero fees.
Are you ready to see how much a debt settlement company in Winslow, AZ, could help you save?
Choosing a Debt Settlement Firm: Winslow (AZ)
Legally, Winslow debt settlement firms must provide you with certain information prior to joining:
- Fees: all fees have to be completely described.
- Schedule: they have to say when they’ll get in touch with the credit card issuers, not to mention the funds must be saved.
- Dangers: they have to explain the detrimental consequences for your credit ratings
Make sure you determine whether or not your Winslow debt settlement firm is trustworthy. Check how long they’ve been negotiating debt, how much debt they have negotiated, what their success rate is, how much they cost, and whether they’re registered settle credit card and payday loan debt in Arizona.
Debt Settlement Drawbacks in Winslow (AZ)
Often known as debt negotation in Winslow, debt settlement provides several big benefits:
- Serious Reduction in Debt
- Substantial Interest Savings
- Quick 24-48 Month Timeline
- Flexible Repayment Plan
- Substitute for Declaring Bankruptcy
However, it means placing funds into a savings account each month instead of paying back your creditors. When enough has been saved you give them the negotiated amount. Not surprisingly, this is bad for your credit scores.
Before you decide to go with debt settlement, there are some things you need to know:
- It’s very bad for your FICO rating.
- Debt never 100% cleared.
- Debt continues to increase during negotiations.
- Calls from collectors might not stop.
- Tax disadvantages.
You’ll want to understand that credit card companies do have the right to take legal action against a borrower to pursue an outstanding debt. There is more likelihood of getting sued. How come? Simply because you stop repaying your creditors each month.
AZ Statute of Limitations as Regards Credit Card Debt
In Arizona, credit card providers have 6 years to take legal action for unsecured debt that’s owed them.
For you to be qualified for a debt settlement program in Winslow, AZ, you generally need:
- $10,000 in Credit Debt
- $300 a Month to Spend
Of the 14,191 people who live in Winslow, 1,406 are estimated to carry credit card debt in excess of $10,000.
If your debt-to-income ratio is 50% or more, then debt settlement or consolidation is needed.
In a nut-shell, if you are allocating more than half of your income to credit cards, rent, and loans, you have to talk with a debt relief coach. Seeing as the average income in Winslow is $2,332.00 per month, we’re talking about $1,166. You should really aim for a ratio that’s nearer to 36%, or $840 for the average Winslow consumer.
Winslow Debt Settlement vs Management
Debt settlement is often mistaken for credit counseling, managing debt, or debt consolidation. They are entirely separate. Debt settlement results in a decrease in what you owe, while consolidation or management won’t.
You continue to pay off your creditors every month under credit counseling, so your credit score isn’t impacted nearly as dramatically as it will be after a debt settlement, during which you stop repaying your debt. However, consumer credit counseling generally takes longer and in time you will pay your creditors in full. For details, go here: credit counseling in Winslow, AZ.
Debt Settlement Fees: Winslow (AZ)
Whereas debt management plans have flat fees each month, debt settlement costs are generally applied once each creditor is settled. Many settlement agencies charge a percentage of the debt you want settled, often around 15%. This service charge will most likely be paid over 1-2 years.
Winslow (AZ) Debt Settlement Specialists
- AZ Debt Settlement Service? Contact us!