For people in Oak Island, NC, debt settlement is becoming an increasingly popular option.
At North Carolina Debt Relief, we can put you in contact with a debt settlement expert in Oak Island, NC – this minute – who works with people in Oak Island.
Legally, Oak Island debt settlement solutions are required to divulge certain information before getting started:
- Pricing: all fees are to be thoroughly spelled out.
- Schedule: they have to tell you when they are going to contact your creditors, not to mention the funds you must have saved.
- Risks: they must explain the adverse repercussions for your credit score
Be sure to find out whether or not your Oak Island, NC debt settlement consultant is legit. See the following:
- How many years have they been operational?
- How much debt have they settled?
- How much do they charge?
- What is their record with the BBB?
- What is their success rate?
- Are they certified in NC?
There are telltale signs of agencies you should steer clear of. For example, if any Oak Island debt settlement companies try and charge you advance fees, dump them, as this is illegal!
Drawbacks of Debt Settlement in Oak Island, NC
Often called debt negotiation in Oak Island, debt settlement is the only debt relief program that actually contributes to a decrease in the overall amount owed. But you should speak to a qualified debt advisor before moving forward.
Before you proceed with debt settlement, there are certain things you should know. To start, your creditors do not have to agree to the settlement. Additionally, debt settlement will be a whole lot worse for your credit score than paying off your debt with a debt consolidation loan, since what you owe won’t be completely paid back. Furthermore, your collection calls may not grow less frequent appreciably.
How can you tell if debt settlement is right for you?
- Are you looking into bankruptcy?
- Do you have $10,000 or more in debt?
- Are you comfortable with unfavorable credit?
If you meet these criteria, you’re not alone. It’s estimated that 1,573 Oak Island residents are carrying at least this much debt.
Your credit specialists will look at your debt to income ratio (DTI).
In simple terms, if you’re devoting over 50% of your income to credit cards, rent, and/or vehicle loans, you need to get in touch with a debt relief specialist. Given that the average income in Oak Island is $3,482 on a monthly basis, this is $1,741. You really want to have a ratio that’s closer to 36%. In Oak Island, this is $1,254, normally.
Consolidating vs Negotiating Your Debt in Oak Island, NC
Settling your debts and consolidating them are two separate strategies. Debt settlement programs entail a decrease in what you owe, whereas consolidation or management does not. With debt management, consolidation, and counseling, your payment per month is minimized and continue to pay back the card issuers until your debts are paid in full. There’s no doubt that this strategy is does far less damage to your credit ratings, but the only debt savings result from reduced rates of interest and late fees.
Click here for additional information about credit counseling in Oak Island.
How Debt Negotiation Firms Receive Commission
Whereas debt management plans have regular monthly fees, debt settlement expenses are generally assessed after each balance is repaid.
The vast majority of settlement companies will charge you approximately 15% of the amount you owe – which is a big chunk of change! This service charge is normally paid over 1-2 years.
- NC Debt Settlement Company? Contact us!