Debt Settlement in Kentucky
Weight Your Debt Relief Options
Below are five commonly used forms of debt relief in Kentucky. These descriptions can provide you with a rough idea of how each form of debt relief works.
1. Make Minimum Monthly Payments
While it may feel like some progress is being made paying the minimum amount, this is often the worst debt relief strategy one can employ. Minimum fee structures are designed to siphon as much in interest out of debtors as they possibly can, so paying only the minimum can keep you in debt longer and cost you more to repay the debt over time.
2. Debt Management or Credit Counseling Plan
Credit counseling is a form debt management program which involves working with a debt counseling agency to organize & repay debts. Most of these programs are free and entail making a single monthly payment to an agency who then redistributes the funds every months to creditors on your behalf. These programs are designed to take 3 to 5 years to repay the debt on average. This form of debt relief can secure lower interest rates in the process, but you still end up paying back all of the debt principal plus any interest.
3. Debt Consolidation Loan or Credit Card
Debt Consolidation is a form of relief that involves taking out another loan or credit card that has a low-interest rate loan and using that capital to pay off other unsecured debts that have higher interest rates. This can consolidate many different debts into a single monthly payment, that is in theory, lower than what was being paid for before. The downside is that these types of credit cards & loans can be hard to qualify for and if they are not repaid within the promotional window, the low interest rate bounces back to a high one. This form of debt relief also only works to reduce the interest rate, similarly to credit counseling.
4. Debt Settlement or Debt Negotiation in Kentucky
Debt settlement is a form of debt relief that involves negotiating with creditors to secure a reduced repayment deal. Settlement is unique in that it can reduce the principal balance in addition to the interest rate being applied to the debt. With a reduced total debt balance having to be repaid on top of interest being accrued at a lower rate, debt settlement can generally be a faster and less expensive option for attaining debt relief when compared to either debt counseling or debt consolidation.
5. Filing for Bankruptcy in Kentucky
Bankruptcy may be inevitable for individuals who cannot meet their debt obligations. Formally declaring bankruptcy puts a halt to the creditor collection process and the debtor is cleared of some or all of their unsecured debts, but there is significant damage to their ability to borrow for years after. If creditors are no longer willing to negotiate, bankruptcy can be a viable option for helping to control debt.
Figure Out Where Your Finances Stand
Are your finances burdened by hardship conditions?
Loss of employment, divorce, and healthcare costs are some of the three biggest causes of debt in Kentucky. Each of these creates a legitimate financial hardship that can create a serious burden on a household budget and happen to anyone through no fault of their own.
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 Kentucky, then Debt Settlement can provide an honest and ethical debt relief alternative.
Are you committed to attaining freedom from debt?
Debt Settlement is an aggressive form of debt relief and it can present an occasional challenge as negotiations continue. It is not a “free ride” for consumers who simply don’t feel like paying their bills. Your level of commitment to seeing things through to the end, even when the road seems a little bumpy, is often what determines success in these programs. For those who are willing to stay the course, a debt settlement program can be the fastest and lowest cost option for relieving unsecured debt in Kentucky.
Is most of your debt from credit cards?
Settlement can negotiate discounts on many forms of unsecured debt including repossession deficiencies, personal lines of credit, financing contracts, signature loans, department store cards, miscellaneous bills and more. But the biggest deals tend to come from credit card accounts; so, if most of your debt load is from credit cards, you can likely expect good results from a debt settlement strategy.
Learn About the Kentucky Debt Settlement Process
How Does Debt Settlement Work in Kentucky?
Debt Settlement works by communicating with creditors to negotiate a payment to settle the balance owed (principal) on your unsecured personal debt accounts. During this process, up to 50% of the principal balance can be removed and the interest rates can be lowered. This is different from Debt Consolidation and Credit Counseling which do not affect the total debt balance and only work to reduce the interest rates. By offering a sizable reduction in the principal balance, Debt Settlement can be a much faster means of handling your debt in Kentucky when compared to other forms of relief.
Most creditors are willing to negotiate a reduced payment as this is a better option than losing the entire debt amount in a bankruptcy proceeding.
Types of debts included in a Debt Settlement Program:
- Credit cards
- Old judgments
- Old repossessions
- Department store cards
- Signature loans
- Personal lines of credit
- Private student loans in default
- Other unsecured debts
Types of debt do not qualify for Debt Settlement:
- Car loans
- Federal student loans
- Home mortgages
- Medical / Hospital bills
- Credit Union debts
- Other secured debts
Kentucky Debt Settlement Services by City
- Louisville Debt Settlement
- Lexington Debt Settlement
- Bowling Green Debt Settlement
- Owensboro Debt Settlement
- Covington Debt Settlement
- Hopkinsville Debt Settlement
- Richmond Debt Settlement
- Florence Debt Settlement
- Georgetown Debt Settlement
- Henderson Debt Settlement
This is not an exhaustive list. Be sure to check with your Kentucky debt counselor for more information.
Finding the Right Settlement Firm
By asking these 14 important questions, you can pick the good settlement firms from the bad ones right off the bat. We always recommend checking with the Better Business Bureau (BBB) as well to see the complaint history and average customer rating with other consumers from Kentucky.
New Era has been helping Kentucky consumers become debt free since 1999 and has maintained an A+ rating with the BBB. In the two decades we’ve spent working in the industry, our team of debt negotiators has settled more than $250,000,000 in debt for our clients across the United States. Check out our Testimonials page to see what past clients have had to say about their experiences.
What Makes New Era the Right Choice?
No Upfront Fees. A Debt Settlement company should never charge you upfront fees for a settlement program. Not only is this the ethical way to go about charging for settlement, but as per an FTC ruling effective October 27, 2010, it’s also the only legal way to charge fees for settlement.
- End-to-end service. Some “debt settlement” agencies are only sales groups who acquire settlement leads and then sell or pass them off to a different company to handle the settlement itself. This means your financial data is being passed around between different parties and the sales person has little to no interest or control in how the debt is settled in the end. Always look for a company who will handle your program from beginning to end, such as New Era Debt Solutions.
- 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.
- Experience. With the crash of the sub-prime mortgage industry in Kentucky many new debt settlement companies headed by prior mortgage industry people 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.
Get Relief from Debt
In association with Consumer First Legal Network, New Era negotiators are experts at landing you an awesome settlement deal that could change your financial life for the better, but the offers don’t last forever. The most successful debt settlement clients in Kentucky are the ones who are ready and willing to get started immediately.
Call us today for a FREE debt analysis with a New Era expert. See how much time and money you can save by working with the right team. Contact New Era Debt Solutions to get started.