Are you hoping to escape bankruptcy and repay a part of what you owe? Finding a reputable Indiana debt settlement firm might be the first step toward being debt-free.
We can get you in contact with a debt settlement consultant in Indiana, PA – this minute – who can negotiate with your creditors to reduce your credit balances.
According to the FTC, Indiana debt settlement agencies are required to give you certain details prior to enrolling:
- Fees: all fees must be thoroughly enumerated.
- Schedule: they have to tell you when they are going to reach out to your creditors, along with the funds you must have saved.
- Dangers: they must tell you about the detrimental repercussions for your credit score
Be sure that your Indiana debt settlement consultant is an honest one by finding out how many years they have been negotiating debt, how many clients they’ve handled, what their success rate has been, how much they charge, and ensure they’re licensed to do business in Pennsylvania.
Don’t forget: no Indiana debt settlement agencies should charge fees in advance!
Debt settlement is the only method that actually contributes to a decrease in the overall amount owed. But it involves depositing funds into a savings account each and every month rather than repaying your creditors. When you have enough money saved, you give them the negotiated amount. Obviously, this will be detrimental to your credit rating. Do you want to see how much a debt settlement company in Indiana, PA, could save you?
So that they can negotiate a better settlement, your debt settlement agency will probably have you quit repaying your credit card companies. Your money will go into a checking account. When you have sufficient funds to pay the arranged amount, not to mention the fee owed to your debt settlement firm, your card balances will be paid back. Regrettably, your FICO rating gets worse and worse. Obviously, filing for bankruptcy would ruin your credit rating as well. In keeping with quite recent FTC guidelines, your savings account has to be under your complete control, whatever the result of your debt negotiations. It also has to be FDIC-insured.
As a resident of Indiana, you ought to be aware of the statute of limitations on debt:
- Statute of Limitations: 4 years
- State Law: 42 Pa. C.S. 5525(a)
- Additional Information: law.onecle.com/pennsylvania/judiciary-and-judicial-procedure/00.055.025.000.html
Who Should Try Debt Settlement: Indiana, PA
In order to be a candidate for a debt settlement program in Indiana, PA, you typically need:
- $10,000 in Debt
- $300 Per Month For Payments
There are 34,170 people in Indiana, and we estimate that 3,385 carry credit card debts in excess of $10,000.
Income vs Debt in Indiana, PA
Consumers who have debt to income ratios of 50% or more are prime prospects for debt relief, whether it be settlement or consolidation.
In short, if you are investing more than half of what earn in credit cards, rent/mortgage, and vehicle loans, you’ll want to consult a debt relief coach. Given that the average income in Indiana is $1,215 each and every month, we’re talking about $608. You actually want to aim for a ratio that’s closer to 36 percent, or $437 for the average Indiana consumer.
Needing to decide between credit settlement and consolidation?
Whereas debt settlement leads to a reduction in what you owe, management won’t. When it comes to debt management, consolidation, or counseling, your payment amount is minimized, but you keep paying off the card companies until your debts are fully paid. This is is more favorable for your FICO rating. However, the only debt savings come from decreased rates and late fees.
Click here for more information about credit counseling in Indiana.
As the most radical debt relief option at your disposal, debt settlement is generally the highest priced. For the most part, settlement companies charge you a percentage of the debt you want settled, often around 15 percent. This fee is usually assessed over 12-24 months.
- Pennsylvania debt settlement company? Email us for a free listing!