An experienced Bensalem debt negotiator will work hard to settle your debt for less than what you owe.
At Debt Relief of Pennsylvania, we can help you find a debt settlement consultant in Bensalem – this minute – who works with Bensalem residents. Isn’t it time to get rid of credit card debt?
You will need to consult a debt relief consultant to determine if debt settlement fits your needs.
You can’t put your faith in some underhanded agency. Virtually any reputable debt settlement company in Bensalem, PA, will give you the following information prior to signing up. They spell out their rates, their savings requirements, and the hazards you are up against.
Always make sure that your Bensalem debt settlement consultant is reputable. Check the following:
- Qualifications: Premier associations include AFCC (American Fair Credit Council) and IAPDA (International Association of Professional Debt Arbitrators).
- Rates: Be sure that the fees they charge are acceptable.
- User Reviews: Seek out favorable feedback from former consumers.
No Bensalem, PA debt settlement firms are allowed to charge fees upfront!
Debt settlement programs provide some substantial benefits:
- Only Pay 40-80% of Original Amount Owed
- Significant Interest Savings
- Quick 24-36 Month Timeline
- Adjustable Settlement System
- Alternative to Declaring Bankruptcy
However, it requires serious thought.
So that they can leverage a better settlement, your debt settlement company will probably recommend that you quit making payments to your creditors. Your money will go into a checking account. When there’s sufficient funds to pay the negotiated settlement, plus the fee owed to your debt settlement firm, your card balances will be repaid. Lamentably, your FICO score worsens because you’re not making your payments. Obviously, filing for bankruptcy would crush your credit ratings too. In accordance with quite recent FTC policies, this savings account must be yours to manage, regardless of the result of your credit card settlement, and it has to be FDIC-insured.
Can You Be Sued?
You’ll want to be aware that credit card companies do have the right to sue a borrower to help them pursue a debt. There is a bit more likelihood of litigation. Why is that? Simply because you stop repaying them every month.
Credit card providers have a limited amount of time to take legal action for unsecured debt. According to PA’s statute 42 Pa. C.S. 5525(a), this is 4 years.
Suitable candidates for credit card settlement in Bensalem have at least $10K in debt, are thinking about bankruptcy, and cannot afford the minimum payments on their credit card bills monthly.
If you meet these criteria, don’t be discouraged. We estimate that 6,309 of Bensalem’s 63,693 residents owe at least $10,000 of credit card debt.
If you have a debt-to-income (DTI) ratio of 50% or more, then professional debt relief is something you should think about. The best ratio? 36 percent. The average income in Bensalem, PA, is $48,491 each year, or $4,041 every month, meaning a typical resident of Bensalem ought to pay approximately $1,455 in credit card, mortgage, and vehicle/college loan repayments. Lamentably, many people are obligated to pay $2,061 or more every month. These individuals could benefit from debt relief, either credit card settlement or consolidation.
Settling your debt and consolidating it are two distinct strategies. Debt settlement involves a decrease in what you owe, whereas consolidation or management does not.
These methods of relieving debt – debt consolidation, management, counseling – are much better for your FICO ratings over the years. However, these are long term solutions that require you to pay off all of your debt. For more details, go here: debt consolidation in Bensalem, PA.
No debt relief specialists in Bensalem are allowed to bill you upfront. Any legit debt settlement service in Bensalem, PA, will only charge a fee after an account is settled. Other debt relief options generally call for flat monthly payments. Generally, settlement firms charge you a percentage of the debt you want reduced, often about 15%. This service charge will normally be spread out over 12-24 months.
Debt Settlement Agencies: Bensalem, PA
- Cobra Mortgages & Credit Counseling, 634 Bristol Pike, 19020