A professional Westchester debt settlement company works to reduce your debt to less than what you owe. At Illinois Debt Consolidation, we can match you with a debt settlement company based on what you owe and your location, as well as a few additional factors. Best of all: there are absolutely no commitments, and it’s free.
Finding a Debt Settlement Company: Westchester, IL
You shouldn’t trust your debt settlement to some underhanded service. Any good debt settlement company in Westchester, IL, will provide you with certain specifics before you join up, including how much the fees are for their service, how much time before they contact your creditors, and what kinds of risk will be involved.
Be sure you determine if your Westchester, IL debt settlement consultant is reputable. Research how many years they have been in business, how much debt they’ve negotiated, what their rate of success is, what their fees are, and be sure they’re registered settle credit card and payday loan debt in Illinois.
There are telltale indicators of services to stay away from. For instance, if any debt settlement company in Westchester wants to charge advance fees, you can’t trust them.
Westchester Debt Settlement Considerations
Debt settlement offers some big advantages:
- 20-60% Decrease in Debt
- Significant Savings in Interest
- Brief 24-48 Month Timeline
- Flexible Repayment Plan
- Alternative to Declaring Bankruptcy
However, it involves depositing funds into a bank account each and every month as opposed to paying back your credit card bills. Then you send them the arranged amount. Needless to say, settling your debts in this way is bad for your credit rating.
The solutions offered by debt settlement firms in Westchester, IL, aren’t without their shortcomings:
- Bad for your FICO rating.
- Debt never completely repaid.
- Debt keeps building while negotiations are under way.
- Calls from collection agencies may not decrease.
- Tax disadvantages.
Statute of Limitations for Debt in IL
Credit card companies have a limited amount of time to file a suit for unpaid credit card debt. In Illinois, this is 5 or 10 years.
Minimum Debt Reduction Criteria: Westchester, IL
In order to be a candidate for a credit card debt settlement program in Westchester, IL, you ordinarily need to have:
- $10,000 in Unsecured Debt
- $300 Per Month to Spend
If you fall into this category, you are not alone. It’s estimated that 1,656 Westchester residents carry this much debt.
What’s Your Monthly Debt Load?
If your debt-to-income ratio is more than 50%, then debt settlement or consolidation is worth exploring. The ideal ratio? 36%. In Westchester, people make $59,105 each year, or $4,925 per month. This means the average resident of Westchester ought to spend a maximum of $1,773 in credit card, mortgage/rent, and loan payments, but many individuals owe $2,463 or more each month. These individuals could use debt relief programs, whether it be credit card settlement or consolidation.
Westchester Debt Settlement vs Consolidation
Trying to decide between credit card debt settlement and consolidation? The vast majority of debt management programs provide reduced interest levels on your credit cards. However, there is no decrease in existing debt is involved. When it comes to debt management, consolidation, and counseling, your monthly payment is consolidated. However, keep paying off your creditors until your debts are paid in full. This is is more favorable for your credit ratings. Having said that, the only debt savings come from cheaper rates and late fees.
Click here to learn more about credit counseling in Westchester, IL.
Whereas debt management plans have flat fees each month of $25-40, debt settlement fees are normally assessed when each account is paid off.
The vast majority of settlement agencies will charge you around 14-18% of what you owe – that’s a whole lot! Basically they have been prohibited by the FTC from assessing a fee until a balance has been repaid.
Have you considered debt settlement attorneys in Westchester, IL?The truth is, an attorney can often be more expensive than a debt settlement consultant. Most lawyers will ask you for a retainer, typically 5% of your debt, plus a bill every month. Moreover, they also get a share of your debt savings. The proportion differs, but it’s generally roughly 30%. This is generally more costly than a debt settlement agency.
- Liberty Credit Services, 9865 W Roosevelt Rd, 60154
- Accomplish Credit, 1 Westbrook Corporate Ctr, #300, 60154