Debt Settlement in Illinois
In association with Consumer First Legal Network (CFLN), New Era Debt Solutions has provided debt relief services to thousands of consumers in Illinois to help them achieve financial freedom from debt. In business since 1999, our team of debt professionals has provided debt settlement services to consumers in Cook County, DuPage County, Lake County, Will County, Kane County and other areas of from across the state.
Ready to get started? Here’s what you can do:
- Contact New Era Debt Solutions at 800.527.4421 for a free consultation with a debt expert.
- Read up on the essential factors of how to succeed in debt settlement.
- Explore the options available that have worked for other people from Illinois.
Illinois Debt Statistics
Illinois is one of the five most populous states in America. Its average household income is around $51,000 per year, and the average consumer has a credit score of 725, but its consumers borrow more on credit cards than the average American and the unemployment rate across the state is one of the highest in the country at nearly 9%. In Chicago alone, the unemployment rate is estimated to be over 10%. This means that for a city with almost 3,000,000 inhabitants, over a quarter of a million people looking for work.
Debt Laws in Illinois
Consumers in Illinois are protected by the national laws created under the Fair Debt Collection Practices Act (FDCPA). This umbrella of consumer protections disallows debt collectors & collection agencies from:
- Threatening to contact a debtor’s place of work unless the payment is more than 30 days delinquent.
- Attempt to collect on an agency’s fee unless it was approved in the original contract.
- Contact a debtor’s employer without notifying the debtor five days ahead of time in writing.
- Threat to or disseminate information regarding the debt to anyone other than those who have a professional need to access that information.
- Take any action with the intent of causing physical or mental harm to a debtor or their family.
- Charging more than a maximum of 5% interest in Illinois
Additionally, consumers in Illinois have a wage protection of 85% of weekly net income or 45x the minimum wage set by the federal government.
Illinois Statute of Limitations
The Illinois statute of limitations prevents creditors from pursuing collection of a debt after a certain amount of time has passed. For the different types of debt, these are the limitations set by the law:
- Open Credit Card Accounts: 10 Years
- Written Contracts: 10 Years
- Promissory Notes: 10 Years
- Oral Agreements: 6 Years
Get Informed About Illinois Debt Relief Options
How Does the Process of Debt Settlement Work in Illinois?
Debt Settlement works by negotiating a payment agreement with creditors for less than the balance owed (principal) to satisfy an outstanding debt. Settlement is different from Debt Consolidation and Credit Counseling as it can reduce the total balance of debt compared to only affecting the interest rate.
By reducing the principal owed, Debt Settlement can often provide a quicker route to handling your debt in Illinois. Many financial institutions in Illinois are willing to accept a reduced payment instead of losing the entire amount in a bankruptcy proceeding.
Our team of debt negotiators has over 20 years of experience landing awesome settlement deals. If you need help with debt relief in Illinois, give us a call to get started 800.527.4421 on a program for debt settlement in Chicago, debt settlement in Aurora, or debt settlement in Rockford.
These Types of debt can be included in a New Era Debt Settlement Program in Illinois:
- Credit cards
- Old repossessions
- Signature loans
- Personal lines of credit
- Department store cards
- Other unsecured debts
- Old judgments
- Private student loans in default
The following types of debt are not eligible for settlement in Illinois:
- Home mortgages
- Federal student loans
- Car loans
- Other secured debts
- Credit Union debts
- Medical / Hospital bills
This list of debt types is not all-inclusive. Be sure to check with your Illinois debt counselor for more information.
Illinois Debt Settlement Services by City
- Chicago Debt Settlement
- Aurora Debt Settlement
- Rockford Debt Settlement
- Joliet Debt Settlement
- Naperville Debt Settlement
- Springfield Debt Settlement
- Peoria Debt Settlement
- Elgin Debt Settlement
- Wakegan Debt Settlement
- Cicero Debt Settlement
Consider Your Options
Learn more about some of the most common debt relief methods below to see which one could be right for your finances.
1. Make minimum monthly payments until the debt is repaid.
Just making the minimum payment every month is viable an option, but it is certainly not a good one. It may seem like the most economical option which fits neatly into your finances in the short term, but will usually cost you the most in interest over time and keep you in debt the longest. Alternatively, there are other debt relief options which can help you achieve your goal more quickly & at a lesser cost.
2. Credit Counseling or Debt Management.
Credit counseling is a debt management program (DMP) where a single payment is made to a counseling/debt relief agency, ideally at a lower interest rate, and that agency distributes the money to your creditors. With a DMP, all of the principal balance plus interest still has to be repaid. In Illinois, the completion rates tend to be quite low for credit counseling programs because they are often designed to take up to 5 years to fully pay off the debt.
3. Debt Consolidation.
With a debt consolidation loan, a larger loan with a low interest rate is taken out, and those funds are used to pay off higher-interest unsecured loans. It might sound counterintuitive to take out another loan to pay off your debts, but this form of debt relief can – in theory – combine all payments into a single one with lower rates than what you were paying for all your credit card and other unsecured loans. The disadvantage with debt consolidation loans is that they can be challenging to qualify for and don’t end up reducing the principal balance that has to be paid.
4. Debt Settlement or Debt Negotiation in Illinois.
Debt settlement differs from the first two options in that it can reduce the actual principal balance you owe in addition to the interest rates through negotiation. Because the total balance of debt can be significantly reduced with a reasonable settlement program, it is generally a faster and less expensive debt relief option than either counseling or consolidation. For past settlement clients, our experienced team of negotiators has been able to reduce the principal debt balance by up to 60%.
For the individual who absolutely cannot meet the repayment obligations of their debts, bankruptcy may be inevitable. A formal declaration of bankruptcy brings a halt to the creditor collection process, and the debtor may no longer owe some or all the unsecured debt, depending on which type of bankruptcy was filed for, but bankruptcy does significant damage to your credit score for years proceeding.
Figure Out Where You Stand with Debt
Do you have a legitimate financial hardship condition?
The biggest debt problems in Illinois tend to result from circumstances such as a: loss of income, medical issues, or divorce / separation. These are legitimate financial hardships that can happen to anyone through no fault of their own, and anyone of these situations can wreak havoc on a household budget.
Debt Settlement system is not a “free lunch” for people who don’t feel like paying their bills. If you are over your head due to a hardship circumstance, and you’d prefer to work things out with your creditors rather than declare bankruptcy in Illinois, then Debt Settlement can provide an honest and ethical debt relief alternative.
Are you committed to becoming debt free?
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 Illinois.
Are your debts primarily from credit cards?
Most types of unsecured debt can be negotiated, including lines of credit, signature loans, repossession deficiencies, financing contracts, department store cards, miscellaneous bills and more. The deepest discounts, however, are usually obtained with credit card debts; so, if most of your debt load is comprised of credit card debt, you can anticipate good results from the Debt Settlement strategy.
Can I Trust New Era?
You can pick the good guys from the bad guys by asking 14 important questions. It is always a good idea to check with the Better Business Bureau for the company’s rating and complaint history with consumers in Illinois. New Era Debt Solutions is rated an A+ with the Better Business Bureau.
New Era has been helping Illinois consumers become debt free since 1999. We’ve settled more than $250,000,000 in debt and worked with thousands of clients. But don’t take our word for it. Visit the Testimonials page to read or listen to our clients’ stories in their own words.
Here’s what makes New Era different:
No Upfront Fees. A Debt Settlement company should not charge you any fees unless or until they settle your debt. Period. This is not only the most ethical way to do business – per an FTC ruling effective October 27, 2010, it’s also the only legal way to charge fees.
- No “add-on” fees. Some debt settlement companies try to get around the law by charging administrative fees, signing fees, consultation fees and various other excuses to get money from you. Good guy debt settlement companies such as New Era charge only a settlement fee, which you do not pay until your debt is settled.
- End-to-end service. Some “debt settlement” companies you may talk with are only sales groups who will sell or pass your account off to a different company to handle your settlement. This means your financial data is being passed around and the sales person has no control over – or interest in – how your debt is settled. Look for a company such as New Era who will handle your program from beginning to end.
- Experience. With the crash of the sub-prime mortgage industry in Illinois, many new debt settlement companies headed by former mortgage industry professionals suddenly popped up. These companies do not have nearly the experience or the relationships that lead to your best settlement deals. Look for companies who have been around long enough to amass a solid settlement track record. For example, New Era has been settling debts since 1999, and we’ve settled more than $250,000,000 in debt for our clients.