A debt settlement firm in Lexington, TN, should be able to negotiate your debts down 20-60% from their original amount.
At Debt Consolidation Tennessee, we can help you find a debt settlement company – today – that works with people in Lexington. Isn’t it time to lower your unsecured debt?
You need to consult a debt professional to find out whether or not debt settlement is a good idea for you.
Locating a Debt Settlement Company: Lexington, TN
You shouldn’t trust your debt settlement to some underhanded service. Any reputable debt negotiator will provide you with certain information prior to enrolling:
- Pricing: charges are to be completely described.
- Schedule: they must tell you when they are going to contact your creditors, along with the funds must be saved.
- Risks: they must inform you of the negative consequences for your credit score
Be sure to determine whether your Lexington debt settlement service is legit. See the following:
- Certifications: Significant certifications include AFCC and IAPDA.
- Fees: Be sure that the rates they charge are sensible.
- Client Feedback: Try to find favorable responses from past clients.
There are telltale warning signs of agencies you should steer clear of. An example, if any debt settlement company in Lexington attempts to charge you fees straight away, don’t be a part of their program.
Also known as debt negotation in Lexington, debt settlement provides a number of big benefits:
- Only Pay 40-80% of Original Amount Owed
- Big Interest Savings
- Short 2-3 Year Timeline
- Convenient Payment Structure
- Substitute for Declaring Bankruptcy
However, it has a serious influence on your credit scores. For that reason, you have to be completely sure that it is the correct solution to reduce your debt.
Before you proceed with debt settlement, there are some things you must know. For example, settling your debt can lead to a low FICO score, because your credit card debt will never be paid in full. Considering that debt consolidation will involve paying off creditors month after month, collector calls typically be reduced. Not the case with debt settlement.
Collectors have a limited period of time to file suit for unsecured debt. According to TN’s statute 28-3-109, this is 6 years.
Who Ought to Opt For Debt Reduction: Lexington, TN
Suitable prospects for debt settlement in Lexington owe at least $10,000 in debt, are considering bankruptcy, and can’t afford to make the minimum payments on their credit or store cards monthly.
There are 16,176 people living in Lexington, and it’s thought that 1,602 have credit card debt in excess of $10,000.
Debt vs Income in Lexington, TN
Consumers who have debt to income ratios of 50% or more are excellent candidates for debt relief of some kind, either settlement or consolidation.
To put it succinctly, if you are investing over half of what earn in credit cards, rent/mortgage, and loans, you must consult a debt settlement consultant in Lexington, TN. Given that the average income in Lexington is $2,649 a month, this is $1,325. You should really shoot for a ratio of somewhere around 36 percent. In Lexington, this is $954, based on the average income.
Lexington Debt Settlement vs Credit Counseling
Credit card settlement and consolidation each have their advantages and disadvantages. All of these are types of debt relief. Debt reduction is unique in that it leads to a proper decrease in the balance due.
You pay off your loan companies month after month during credit counseling; hence your credit score is not impacted as badly as it will be after debt negotiations. Having said that, debt consolidation generally takes longer and in time you’re going to pay off 100% of what you owe. For further information, go there: credit counseling in Lexington.
Whereas debt management plans have ongoing fees each month, debt settlement costs are usually charged when each credit card is paid off. Most settlement companies will charge you about 15% of your debt – which is a big chunk of change! Though you won’t have to pay until they actually settle your debt.
Lexington, TN Debt Settlement Agencies
- Tennessee debt settlement company? Contact us for a free listing!