Pennsylvania Debt Settlement (PA)

PA Debt Relief

Debt Settlement PennsylvaniaYou don’t want to go bankrupt. A reputable Pennsylvania debt settlement firm may be able to provide you with an alternative solution.

Debt settlement programs offer several well-known benefits:

  • Debt Reduced by 20-60%
  • Substantial Interest Savings
  • Brief 2-3 Year Schedule
  • Adjustable Payment Scheme
  • Substitute for Declaring Bankruptcy

However, you should get in touch with a certified debt expert before going down this road.  We estimate that 1,258,298 of Pennsylvania’s 12,702,379 residents have credit card balances in excess of $10K. Let us connect you with a debt settlement expert in PA.

You shouldn’t settle your debts using some underhanded company. Any reputable debt settlement company in PA will give you the following details prior to enrolling:

  • Compensation: monthly fees must be thoroughly enumerated.
  • Schedule: they must inform you when they will reach out to your creditors, and how much money must be saved.
  • Risks: they must explain the detrimental effects for your credit ratings

Be sure you determine if your Pennsylvania debt settlement consultant is trustworthy. See the following:

  1. How many years have they been in business?
  2. How many cases have they managed?
  3. How much do they charge?
  4. What is their BBB rating?
  5. How effective have they been?
  6. Are they registered in Pennsylvania?

No Pennsylvania debt settlement service should charge fees in advance!

Disadvantages of Debt Settlement

In order to negotiate a better settlement, your debt settlement company will probably have you quit repaying your creditors. Your money will be deposited into a bank account. Once you’ve got sufficient funds to pay the negotiated settlement, along with the fee owed to your debt settlement firm, the money you owe will be paid back. For the time being, your FICO rating declines because you’re not paying your creditors. Furthermore, the collection calls probably won’t taper off. According to relatively new FTC rules, your savings account must be under your complete control, irrespective of the results of your debt settlement. It also should be FDIC-insured.

Minimum Debt Settlement Requirements in PA

To qualify for a credit card settlement program in PA, you typically need to have:

  • $10,000 in Unsecured Debt
  • $300 Each Month to Spend

There are 12,702,379 people in Pennsylvania, and it’s thought that 1,258,298 carry credit card debt in excess of $10,000.

Calculating Your Debt-to-Income Ratio

Your debt consultants will calculate your debt to income ratio, or DTI.

The best ratio? 30 to 36 percent. In Pennsylvania, consumers make $43,239 annually, or $3,603 each and every month. That means the average resident of PA should pay a maximum of $1,297 in credit card, mortgage/rent, and loan payments. Regrettably, many people are paying over $1,802 on a monthly basis. These people need debt relief options of some kind or another.

PA Debt Negotiation vs Credit Counseling

Do you need to decide between credit card settlement and consolidation?

Debt settlement programs result in a decrease in what you owe, and consolidation or management doesn’t.

With debt management, consolidation, or counseling, your payment per month is combined, but you continue paying down your creditors until your debt is paid off. This is better for your credit rating, but the only debt savings come from lowered rates and fees.

Go here for additional information about credit counseling in Pennsylvania.

Debt Settlement Pricing

As the most dramatic debt relief solution at your disposal, debt settlement is generally the most expensive.

A lot of settlement firms charge a percentage of the debt you want reduced, often up to 15%. Generally they are restricted legally from assessing a fee until a balance has been settled

Debt Settlement Where You Live