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Berlin debt relief

Debt is a huge issue among consumers in Connecticut, as well as other parts of the state. Have you looked at approaches like credit counseling or consolidation? It might be time you should.

Consolidating Debt in Connecticut

How convenient would it be to have a single monthly payment instead of several smaller ones? That’s the objective of debt consolidation. This could involve a loan or a debt management plan (DMP), in which a credit counselor works together with your creditors to develop a payoff schedule. This is generally for unsecured debt, meaning debts not backed by an asset, such as credit cards, college loans, and payday loans are unsecured To determine which method fits your needs, speak with a licensed debt relief specialist.

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Credit Counseling and Debt Management in Connecticut

Credit counseling is often superior to a consolidation loan or settlement:

  • Loan approval not required.
  • No damage to your credit.
  • Cost-effective monthly payment.
  • Protected from lenders and debt collection agencies.

In this way, credit counseling is perhaps the less precarious of all debt relief strategies, and it is typically highly affordable too. Perfect candidates for credit counseling have consistent work, existing debts of more than $5K, and an eagerness to pay down their debts. Remember, credit counseling implies paying back all the money you owe; however, it is a whole lot better for your fico scores than debt negotiation. In the beginning, credit counseling was established for credit card issuers to recoup funds from consumers who were not current on their repayment schedules. What this means is a lot of credit card counseling services are very affordable. Imagine if you’re shelling out $2,790 each month and you only earn $5,579.00. If that’s the case, your credit counselor may advise you to enroll in a debt management program. Why should you enroll in a DMP? Well, you might profit from:

  • Decreased APR’s
  • Fewer Debt Collection Agency Telephone Calls
  • Consolidated Payment Per Month
  • Faster Debt Relief

With any debt management plan, your credit counseling firm will carry out paying your creditors every month. All you’ll need to do is hand them a single monthly payment.

Settling Debt in Connecticut

During a debt settlement, you completely stop paying the credit card providers. As an alternative, you put funds into a specialized bank account until you have a sufficient amount to pay the amount arranged by your debt settlement firm. For the time being, your credit rating goes down because you are not paying your creditors. In addition, the collection agency letters and calls might not get any better. In keeping with somewhat new FTC policies, your savings, or “special purpose” account must:

  • Be with an FDIC-insured bank.
  • Permit you to withdraw funds.
  • Not charge you for withdrawing funds.

Debt settlement is not brain surgery, but it’s best left to a professional. If you owe $10,000 in debt, are unable to pay your bills, and would rather get out of debt than have a good credit score, debt settlement may be a good solution.

Do You Need Debt Relief?

How much is your debt overall? If you find yourself spending more than 50% of your income each month on rent/mortgage, auto/student loans, and credit cards, you’ll want to get a savings estimate asap.

Debt Relief in Berlin CT