Debt Settlement in Arkansas
Learn More About Debt Settlement
What is Arkansas Debt Settlement and How Does it Work?
Debt Settlement is a process of negotiation where you, or a debt relief agency acting on your behalf, reaches out to your creditors in order to secure lower interest rates and a reduced debt balance (principal) on your unsecured personal debts. Settlement is quite different from debt consolidation and credit counseling plans which only work to reduce the interest rates but don’t affect the principal debt balance. By bringing down the total debt balance, settlement can offer the quickest path to financial freedom when compared to consolidation or debt management.
Settling debts can be an effective debt relief solution because most creditors are willing to accept a lessened settlement payment as this is a better alternative to losing the entire debt if the debtor files for bankruptcy.
New Era negotiators have over 2 decades of experience securing great settlement deals for our clients, but these offers don’t last forever. The most successful Arkansas debt settlement clients are those who are willing to get started promptly. Contact a debt expert today for debt settlement services in Little Rock, Fort Smith, Fayetteville, Springdale, Jonesboro and other cities in Arkansas.
You can include the following types of debt in a New Era Debt Settlement Program:
- Unsecured credit card accounts
- Defaulted student loans from private lenders
- Credit lines from department stores
- Signature loans
- Personal credit lines
- Older repossessions
- Old judgments
- Other unsecured debt accounts
The following types of debt do not qualify:
- Real estate mortgages
- Student loans from federal sources
- Vehicle loans
- Debt accounts from credit unions
- Medical costs
- Other types of secured debts
Arkansas Cities with Debt Settlement Services
- Little Rock Debt Settlement
- Fort Smith Debt Settlement
- Fayetteville Debt Settlement
- Springdale Debt Settlement
- Jonesboro Debt Settlement
- North Little Rock Debt Settlement
- Conway Debt Settlement
- Rogers Debt Settlement
- Pine Bluff Debt Settlement
- Bentonville Debt Settlement
These lists are not exhaustive. Be sure to check with your Arkansas debt counselor.
Understand the Different Types of Debt Relief
Consumers in Arkansas use a variety of different debt relief methods to clear their unsecured debts. Here are brief descriptions of the most commonly used strategies below.
1. Make minimum payments each month.
Making minimum payments is often the worst plan of action that one can take if they plan to be debt free. You end up paying a lot more in interest in the long run than you would have with many other types of debt relief strategies. If you have the capital, time, or credit score to use any other type of debt relief, these are likely to be better options than just skating by paying the minimum every month.
2. Arkansas Debt Management or Credit Counseling Programs
Debt management programs and credit counseling plans are options that involve working with a debt relief agency to organize and tackle your debts. Typically, debtors pay a single monthly payment to a credit counseling agency which is then distributed among your creditors on your behalf, ideally while reducing the interest rate in the process. With these programs, a debtor still ends up paying the entirety of the debt principal back, but may be able to save on interest in the long run with a reduced rate. Debt management usually takes around 3-5 years to get a debtor back to even but they have low completion rates with consumers in Arkansas.
3. Debt Consolidation Loans & Balance Transfer Cards
Debt Consolidation is a form of debt relief that involves taking out a low-interest credit card or loan and using that money to pay off higher-interest debts. This consolidates multiple payments into a single, more affordable monthly payment that can help debtors save a lot in interest payments over time. The downside with consolidation is that balance transfer cards & loans can be hard to qualify for and they can only affect the interest rates and not the principal debt balance.
4. Debt Negotiation or Debt Settlement in Arkansas
Debt settlement is different from both debt counseling and counseling programs because it can reduce the principal balance in addition to cutting interest rates. With a lower balance of principal debt being owed, debt settlement can create a faster and less expensive option for relieving debt when compared to counseling and consolidation plans.
If you’re looking for experienced debt help, contact New Era to learn more about Pulaski County debt settlement, Benton County debt settlement, or Washington County debt settlement today.
5. File for Bankruptcy
Filing for bankruptcy immediately halts collection efforts and the debtor is cleared of some or all of their unsecured debt balances, but their credit profile and ability to borrow are significantly impacted for years after. Bankruptcy can be a viable option in cases where creditors are no longer willing to negotiate a settlement.
Find the Best Option for Your Finances
Do you have a legitimate financial hardship condition?
Medical emergencies, divorce, and separation are some of the most common causes of debt in Arkansas. Each of these can create unforeseen financial hardships which can destroy the stability of a household’s budget.
If you’re being buried in debt because of a financial hardship and you’d prefer to avoid filing for bankruptcy, then Arkansas debt settlement can provide a great alternative.
Are you committed to staying the course?
Debt Settlement is an aggressive approach to debt relief; and, as such, it presents an occasional challenge. Your level of commitment to staying the course, even when the road gets a little bumpy, often determines success. For those who are willing to see it through, debt settlement can get you through your financial difficulties faster and at a lower cost than any other debt relief option in Arkansas.
Are your debts primarily from credit cards?
With debt settlement programs, most types of unsecured debts can be negotiated such as unsecured lines of credit, repossession deficiencies, signature loans, department store cards, financing contracts, and other miscellaneous bills. Credit card debts typically offer the biggest discounts through settlement, so, if most of your debt is from unsecured credit card accounts, then settlement may be a good debt relief option for your situation.
Can I Trust New Era?
By asking these 14 important questions, you can pick apart the trustworthy debt relief firms from the unethical ones. Before contacting any debt relief agency, it’s also always a good idea to check out their profile with the Better Business Bureau (BBB) to review the company’s complaint history and rating with consumers in Arkansas.
New Era has been helping Arkansas consumers become debt free for over 20 years, and has settled more than $250,000,000 in debt across most states in the US since 1999, and maintains an A+ rating with the BBB. Visit our Testimonials page to learn more about what it’s like to work with one of the best in the business.
Here’s what makes New Era different:
- No Fees Upfront. After an FTC ruling effective on October 27, 2010, debt settlement companies are no longer legally allowed to charge for fees until the debt has been settled. Any company charging upfront fees for debt settlement services is unethical and breaking the law.
- No “add-on” fees. By charging for things such as administrative fees, signing fees, and consultation fees, some debt settlement firms try to get around the law to make more money. The good debt settlement companies, such as New Era, only charge a settlement fee which is not paid until the debt is settled.
- End-to-end service. Many debt settlement companies are actually just sales groups who pick up settlement clients and then sell the account to a third party to handle. This means that your sensitive financial data is being given to multiple parties and the agent who took on your account has little to no control over how your case is settled. When looking for a settlement firm, it’s important to find a team who will handle your program from start to finish, such as New Era.
- Experience. When the sub-prime mortgage industry in Arkansas, a great deal of mortgage industry professionals opened up debt settlement firms to try to cash out on the growing trend of debt services. The issue here is that many of these companies lack the experience and the relationships that lead to the best deals in debt settlement. When you’re looking for a team of experts to handle the important task of clearing your debt, you want the best team you can afford. New Era Debt Solutions has been around long enough to accrue a solid record of successful settlements in Arkansas and has been able to get rid of more than $250,000,000 in debt for our clients around the country.
Get Experienced Help With Your Debt Relief
Speaker to experts with over 2 decades of experience settling debts & get a free debt evaluation today. Contact a debt expert at New Era Debt Solutions to get started.