Nobody wants to go bankrupt. A trustworthy Pottstown debt settlement firm can often help.
At Debt Relief of Pennsylvania, we can help you find a debt settlement agency in Pottstown – now – who works with residents of Pottstown.
Around 5,574 of Pottstown’s 56,268 residents owe at least $10,000 to the credit card companies. Debt settlement could possibly reduce your debt from $10,000 to $4000-$8000.
You shouldn’t entrust your debt settlement to some dishonest agency. Virtually any good debt negotiator will disclose a good bit of details before you enroll, for instance how much the fees are for their service, how much time their system normally takes, and how much risk is involved.
You should make sure your Pottstown debt settlement company is reputable. Find out the following:
- How long have they been operational?
- How much debt have they settled?
- How much are their fees?
- What is their rate of success?
- Are they registered in the state of PA?
Debt Settlement Disadvantages in Pottstown (PA)
Debt settlement solutions have a number of highly-touted advantages:
- Only Pay 40-80% of Original Amount Owed
- Significant Interest Savings
- Brief 3-5 Year Schedule
- Flexible Settlement Plan
- Alternative to Declaring Bankruptcy
However, you should get in touch with a qualified debt counselor before going down this road. Do you want to settle your debts?
To get a better settlement, your debt settlement company will probably ask you to quit trying to repay your creditors. Your funds will be deposited into a savings account. Once you have enough money to pay the arranged settlement, your card balances will be repaid. While waiting, your credit score declines because you are not making your payments. Not surprisingly, bankruptcy would wreck your credit ratings as well. In keeping with fairly recent FTC guidelines, your savings, or “special purpose” account must be yours to manage, regardless of the results of your debt settlement, and it has to be FDIC-insured.
Bear in mind that creditors do have the right to file a lawsuit in order to pursue an outstanding debt. With debt settlement, the risk of your creditors filing suit rises simply because you quit repaying them every month.
Contrary to public opinion, a debt settlement attorney in Pottstown, PA, cannot prevent such a case from transpiring. They might represent you in court, or they might not.
Statute of Limitations for Debt in PA
As a resident of Pottstown, this is what you ought to know about the Pennsylvania statute of limitations on debt:
- Statute of Limitations: 4 years
- State Statute: 42 Pa. C.S. 5525(a)
For you to qualify for a credit card debt settlement program in Pottstown, PA, you generally need:
- $10,000 in Debt
- $300 Each Month For Payments
If you have $10,000 of credit card debt, you are not alone – 5,574 of Pottstown’s 56,268 residents have at least this much debt.
Individuals who’ve got debt to income ratios of 50% or higher are ideal candidates for debt relief of some kind or another, either settlement or consolidation.
In a nut-shell, if you are dedicating over 50% of your wages to credit cards, rent, and/or loans, you should speak to a debt settlement professional in Pottstown, PA. Given that the average income in Pottstown is $4,201 on a monthly basis, this is $2,101. You really need to shoot for a ratio of approximately 36%. In Pottstown, this is $1,512, based on the average income.
Pottstown Debt Negotiation vs Credit Counseling
Credit card settlement and consolidation/management each has its own pluses and minuses. Debt settlement programs involve a reduction in what you owe, while consolidation or management won’t. You pay back your lenders every month under credit counseling. This means your credit rating isn’t impacted nearly as drastically as it is during a debt settlement. Having said that, consumer credit counseling generally takes longer and at the end you’ll repay your creditors in full. For additional information, go here: credit counseling in Pottstown.
What Will Debt Settlement Cost?
No debt settlement services in Pottstown are allowed to bill you before they settle your debts. Any accredited debt settlement company in Pottstown, PA, will only charge you once a balance is settled. Other debt relief options ordinarily entail flat monthly payments. For the most part, settlement agencies charge a percentage of the amount you want reduced, often up to 15%. As a rule, they’ve been prohibited by the FTC from making you pay until a balance has been settled.
Debt Settlement Agencies: Pottstown (PA)
- American Credit Counseling Inc, 912 E High St, 19464
- Bencharge Credit Service Of Pennsylvania – Pottstown, North End Shopping Centre, 19464