Debt Settlement in Connecticut
Weight Your Options for Debt Relief
Below are brief descriptions of some of the most commonly used forms of debt relief.
1. Make Minimum Monthly Payments
It may feel as though making minimum monthly payments can be a good thing, but it is typically the worst method to use for paying off a debt. Not only does it end up taking longer to pay off the debt, but paying only the minimum allows for more interest to be accrued as well, requiring more to pay off the debt in the long run.
2. Connecticut Debt Management or Credit Counseling Programs
Credit counseling is a type of debt management program that is often offered for free. A debtor will typically make a single monthly payment to a credit counselor who then distributes the payment to creditors on behalf of the debtor, ideally while getting the interest rates lowered. These programs are designed to take 3 to 5 years to complete, but they have relatively low rates of completion in Connecticut. With this form of debt relief, the entirety of the debt principal and the accrued interest still has to be repaid.
3. Debt Consolidation Loans
Debt Consolidation is a form of debt relief that involves taking out a large loan or credit card account with a low-interest loan rate and using the extra capital to pay off other forms of unsecured debt that have higher interest rates. This can leave you repaying a singular, reduced monthly payment, but consolidation loans can be hard to qualify for and the reduced interest rates tend to disappear if the loan is not repaid within the promotional deal window.
4. Connecticut Debt Settlement or Debt Negotiation
Debt settlement is a process of negotiating with creditors to work out a reduced payment deal. With less debt being owed and lower interest rates being applied, settlement can generally be a faster & more affordable option for attaining debt relief than debt consolidation or debt management.
5. Bankruptcy in Connecticut
Bankruptcy is a last resort solution for most debtors. Formally declaring bankruptcy halts the creditor collection process and the debtor is cleared from having to repay some or all of their unsecured debts, but significant damage is done to their ability to borrow money for years afterward.
Figure Out Where Your Finances Currently Stand
Is your budget burdened by a legitimate condition of hardship?
A majority of the debt issues that Connecticut consumers face are caused by a divorce or separation, medical costs, or sudden loss in income. These are all legitimate financial hardships that can create serious burden for a household and can happen to anyone through no fault of their own. If you’ve found yourself buried in debt because of a hardship and would prefer to avoid filing for bankruptcy, then debt settlement could provide you with a viable alternative for getting back to even quickly.
Are you committed to getting out from under your debt?
Debt Settlement is not a “free lunch” for consumers who don’t want to repay their debts. It is an aggressive form of debt relief that can presents an occasional challenge for those involved. Your level of commitment in seeing it through, even when the road gets a little bumpy, is often what determines success in a settlement program.
For those who are persistent enough to see it through to the end, participating in a debt settlement program can get help you achieve freedom from debt more quickly and at a lower cost than nearly any other debt relief option in Connecticut. Contact a New Era debt expert for help with Bridgeport debt settlement, New Haven debt settlement, or Hartford debt settlement today.
Is your debt mostly from credit cards?
Most types of unsecured debt can be negotiated down in a settlement program such as department store cards, miscellaneous bills, signature loans, repossession deficiencies, financing contracts, personal lines of credit and more.But, the biggest reductions from settlement tend to come from credit card debts; so, if a good portion of your unsecured debt is from credit cards, you can likely expect a good outcome good results from a Debt Settlement strategy.
Learn About Connecticut Debt Settlement
How Does Debt Negotiation Work?
A Connecticut Debt Settlement program involves negotiating with creditors to arrange a repayment deal that amounts to less than the balanced owed (principal). You can reach out to creditors yourself to initiate this process or hire a settlement company to handle it for you.
Different from debt consolidation or credit counseling programs, debt settlement works to reduce the principal in addition to the interest rates for your unsecured debts. By reducing the principal balance by up to 50%, settlement can drastically reduce the total debt and interest volume that must be repaid.With a lower total balance and slower rate of interest being accrued, debt settlement is generally a less costly & quicker option than other forms of debt relief available.
Creditors are willing to negotiate these reduced payment deals because this is a better outcome for them than losing the entirety of the debt in a bankruptcy proceeding.
Call New Era today to get more information on Fairfield County debt settlement, Hartford County debt settlement, or New Haven County debt settlement. 800-527-4421
Debts that can qualify for settlement:
- Defaulte student loans from private creditors
- Other unsecured debts
- Personal lines of credit
- Department store cards
- Credit cards
- Signature loans
- Old repossessions
- Old judgments
Debts that do not qualify for settlement:
- Medical / Hospital bills
- Credit Union debts
- Home mortgages
- Federal student loans
- Auto loans
- Other secured debts
Connecticut Debt Settlement Services by City
- Bridgeport Debt Settlement
- New Haven Debt Settlement
- Hartford Debt Settlement
- Stamford Debt Settlement
- Waterbury Debt Settlement
- Norwalk Debt Settlement
- Danbury Debt Settlement
- New Britain Debt Settlement
- Bristol Debt Settlement
- Meriden Debt Settlement
This list is not exhaustive. Be sure to check with your Connecticut debt counselor.
Find a Debt Settlement Company You Can Trust
You can separate the good settlement companies from the bad ones by asking these 14 important questions. It is also always a good idea to check with the Better Business Bureau (BBB) to see the company’s average client rating and complaint history in Connecticut.
New Era has been helping Connecticut consumers become debt free since 1999 and we’ve settled more than $250,000,000 in debt during so far. Our Better Business Bureau profile has maintained an A+ rating with consumers from all around the country. Visit our Testimonials page to see what other consumers have had to say about our settlement programs.
What Makes New Era Different?
No Fees Upfront. A Debt Settlement company should never charge you for settlement until the negotiations are complete. As per an FTC ruling effective October 27, 2010, this is also the only legal way to charge for debt settlement fees. Any company trying to charge upfront for this service is breaking the law.
- No “additional” fees. To try to get around the fee laws, many settlement agencies try to charge for extraneous thing such as administration, signing, or even for consultation. An ethical debt settlement would not try to charge you for these types of fees. At New Era, we charge only a settlement fee which is not billed until the debt has been settled.
- All-in-one service. Some “debt settlement” companies out there are only groups of sales agents who acquire settlement leads and then sell or pass them off to a different firm to handle the negotiations. This creates a problem where your financial data is being passed around between multiple entities and the sales group has little control – or even interest in – whether or not your debt is settled properly in the end. Look for a company such as New Era who will handle the entirety of your program with an in-house team of experts from beginning to end.
- Decades of Experience. When sub-prime mortgage industry crashed in the late 2000’s, a good deal of real estate professionals jumped ship and opened debt settlement companies instead. These newer companies lack the experience and connections that lead to the best deals in the settlement industry. You should look for a settlement company that’s worked in the industry long enough to amass a solid track record of successful settlement. For example, New Era has been providing settlement services for over two decades and we’ve settled more than $250,000,000 in debt for our clients.
New Era negotiators are experts at getting you some awesome deals in Connecticut, but the offers don’t last forever. The most successful debt settlement clients in Connecticut are ready and willing to respond immediately. See how much time and money you can save with a FREE debt analysis with a New Era expert. Contact us today to get started.