When you want to look at ways to pay off your debt without having to resort to bankruptcy, we can help. At Debt Consolidation Tennessee, we can connect you with a debt settlement consultant in La Follette, TN that’s right for you.
Locating a Debt Settlement Service: La Follette, TN
Please don’t trust some shady company. Virtually any legitimate debt negotiator will give you the following specifics before you sign on:
- Compensation: all fees should be carefully explained.
- Schedule: they must inform you when they are going to reach out to the credit card companies, as well as how much money must be saved.
- Dangers: they should explain the unfavorable repercussions of no longer paying your creditors
You should make sure your La Follette debt settlement company is an honest one by verifying how many years they have been settling debt, how many cases they’ve managed, what their rate of success is, how much they cost, and ensure they’re registered to do business in Tennessee.
Drawbacks of Debt Settlement in La Follette (TN)
A debt settlement program provides some well-known benefits:
- Only Pay 40-80% of Original Amount Owed
- Big Interest Savings
- Short 3-5 Year Timeline
- Variable Settlement System
- Substitute for Bankruptcy
However, it means putting your money into a savings account each and every month rather than repaying your creditors. Then you pay them the agreed sum. Not surprisingly, this will be detrimental to your credit score. Explore your La Follette debt settlement solutions with a trained counselor – right now!
Settling your debts in this way does have a number of drawbacks:
- Severely impacts your FICO scores.
- Debt not totally cleared.
- Creditors may reject settlement.
- Debt mounts while settlement is being arranged.
- Calls from debt collectors probably won’t decrease.
- Tax disadvantages.
- Could be half a year before negotiations end
As a resident of La Follette, you should understand the Tennessee statute of limitations on debt:
- Statute of Limitations: 6 years
- State Law: 28-3-109
- Addiitional Information: www.lexisnexis.com/hottopics/tncode/
Debt settlement may be a good idea if you would answer in the affirmative to the following questions:
- Are you considering declaring bankruptcy?
- Do you have $10,000 or more in debt?
- Are you willing to tolerate unfavorable credit ratings?
There are 19,614 folks who live in La Follette, and it’s believed that 1,943 carry credit card debt of more than $10,000.
Calculating Your Debt-to-Income Ratio
If you have a debt-to-income (DTI) of 50% or more, then debt settlement or consolidation is probably a good idea.
In a nutshell, if you’re devoting over half of what you make to credit cards, rent/mortgage, and automobile or college loans, you have to talk to a debt settlement consultant in La Follette, TN. Seeing as the average income in La Follette is $1,823 a month, this is just $912. You really need to try and have a ratio of just about 36%, or $656 for the average La Follette resident.
Whether you choose to settle or consolidate your credit balances, you should benefit from a single payment per month, but the similarities end there. All of these are methods of relieving debt. Debt settlement stands alone in that it leads to an actual decrease in the amount owed. Other forms of debt relief – for instance consolidation, management, and counseling – are much better for your credit ratings over time. However, they are protracted alternatives that require paying back every penny you owe.
Go here to find out more about debt consolidation in La Follette.
How Debt Reduction Companies Get Paid
Given that it’s the most extreme debt relief option available, debt settlement is generally not cheap.
Nearly all settlement firms will charge you approximately 20% of the debt owed – this is a lot! Essentially they’re restricted by the FTC from charging you until an account has been repaid.
- Tennessee debt settlement company? Contact us for a free listing!