Debt settlement firms in Erie, PA, will be able to help you significantly reduce your debts. We can match you to a debt settlement consultant in Erie who will:
- Make a deal with your credit card companies.
- Receive an official agreement for debt reduction.
- Establish a program to pay back what you owe in 24 to 48 months.
Isn’t it time to lower your unsecured debt?
Selecting a Debt Settlement Service: Erie (PA)
You shouldn’t trust some unethical company. Any legitimate debt negotiator will provide you with certain information before signing up. They spell out their rates, their starting dates, and the risks you face.
Be certain that your Erie debt settlement company is trustworthy by checking the following:
- How long have they been operational?
- How much debt have they settled?
- How much do they charge?
- What is their score with the BBB?
- What is their rate of success?
- Are they certified to do business in Pennsylvania?
Debt settlement services offer up some well-known advantages:
- Only Pay 40-80% of Original Amount Owed
- Significant Savings in Interest
- Quick 3-5 Year Timeline
- Adjustable Payment Structure
- Alternative to Declaring Bankruptcy
However, it calls for serious consideration.
During a debt settlement, you simply stop making payments to your creditors. Instead, you set aside money in a savings account until you’ve got enough money to pay the amount worked out by your Erie debt settlement company. In the meantime, your FICO rating will get even worse. Obviously, bankruptcy would kill your credit rating too. In keeping with fairly recent FTC guidelines, your savings account has to:
- Be FDIC-insured.
- Give you unfettered withdrawals.
- Not charge you for withdrawing funds.
In Pennsylvania, creditors have 4 years to go to court for credit debt.
Minimum Debt Settlement Criteria: Erie, PA
How can you tell if debt settlement is right for you?
- Have you been entertaining the idea of bankruptcy?
- Do you have at least $10,000 in debt?
- Can you live with bad credit scores?
There are 186,871 residents of Erie, and 18,511 owe credit card debts of more than $10,000.
Along with how much you owe in total, you need to look at your debt to income ratio.
To put it succinctly, if you are devoting over half of your earnings to credit cards, home loan, and/or loans, you must talk with a debt settlement expert in Erie, PA. Given that the average income in Erie is $1,163 each month, this is just $582. You should really aim for a ratio of roughly 36 percent, or $419 for the average Erie resident.
Consolidating vs Negotiating Your Debt: Erie (PA)
Settling your debts and consolidating them are two different methods.
While debt settlement results in reduced debt, consolidation and management do not.
Other methods of relieving debt – like consolidation, management, and counseling – are much better for your credit rating in the long term. However, these are extended remedies in which you pay all of your debt.
For details, visit here: debt consolidation in Erie, PA.
Fee Structure for Debt Settlement
Whereas debt management programs have ongoing fees each month of $25-40, debt settlement expenses are typically charged when each balance is paid back. For the most part, settlement firms charge a percentage of the balance you want reduced, often about 15%. Typically they are prohibited by the FTC from charging you until a balance has been repaid.
Erie, PA Debt Settlement Attorneys
Wondering about debt settlement attorneys in Erie, PA?The truth is, an attorney at law is often pricier than working with a debt settlement company. A good number of lawyers will charge you some sort of retainer, along with a bill every month. The issue is that they get paid a big chunk of the forgiven debt. The proportion varies, however it’s commonly about 30 percent. This is usually less affordable than the rates charged by a debt settlement service. Keep in mind, this lawyer cannot supply you with legal advice they are licensed to practice law in the state of Pennsylvania.
- American Fair Credit Association, 32 W 8th St, 16501
- Complete Credit Services, 12 E 10th St, 16501
- CSA (Collection Service Association), 2501 E Gore Rd, 16510
- Joseph Spero, 3213 W 26th St, 16506
- Cash Cow, 2602 Parade St, 16504