Nashville Debt Settlement

Nashville downtown skyline

Thousands of residents in Nashville struggle to deal with their unsecured debts every year. If you feel that you’re in over your head in monthly payments because of credit cards or other personal loans, Nashville debt settlement or negotiation could be an option that may help to ease the burden and make things more manageable.

Nashville Debt Statistics & Laws

Nashville’s city government owes nearly $4 billion in debt from bonds, retiree healthcare benefits, and other liabilities. This would leave each Nashville taxpayer with a debt burden of over $18,000 if they were made responsible for repaying the debt.

Nashville residents hold an average of $5,200 in credit card debt and bring in nearly $50,000 in average household income. In both categories, this is lower than the national average.

The Statute of Limitations in Nashville, Tennessee is 1 year for malpractice & personal injury claims, and 6 years for contract disputes and other debt collections.

Common Debt Relief Options Used in Nashville, Tennessee

Throughout Tennessee there are a number of debt relief options available to those who are in need. Below are some of the most commonly used relief programs in Nashville.

Balance Transfer Credit Cards in Nashville

A balance transfer cards offer promotional deals such as low-interest rates or no transfer fees that can help a debtor save in the end as long as they pay off the card during the promotional window. If a debtor can qualify for one of these cards, they can use the credit to pay off their unsecured debts with higher interest rates, reducing their monthly payment burden while allowing them to pay more into the debt principal rather than interest. Balance transfer cards can be hard to qualify for, can lose their low interest rates if they’re not paid off during the promotional window, and do not work to reduce the principal debt balance itself.

Nashville Debt Management or Credit Counseling Programs

Credit counseling or debt management programs can help a debtor organize their monthly payment priorities and may be able to secure lower interest rates on unsecured debts as well. In a typical debt management program, a monthly payment is made to the counseling agency who then distributes the payments amongst creditors. A credit counseling firm may be able to work out lower interest rates with creditors during this process, but this is not always the case.

Nashville Debt Consolidation Loans

A debt consolidation loan involves using a low-interest loan to pay off other unsecured debts that have higher interest rates. This strategy can save a debtor substantial amounts of capital that would otherwise be lost to high interest rates that elongate the repayment process. Consolidation is also beneficial in that it can help organize debts by combining many or all of them into a single monthly payment.

Consolidation can be most effective for consumers who have unsecured debts with high interest rates, but the consolidation loan itself has to have lower interest rates to offer benefit. This can be an issue for many debtors who may not be able to secure a low interest loan based on their credit score.

With debt consolidation loans, they can only treat the interest rate and do not work to reduce the principal debt balance as some other relief programs do.

Debt Settlement or Debt Negotiation in Nashville

Nashville Debt Settlement is unique from the previous relief programs in that it can reduce the principal balance of unsecured debts, not just lower the high interest rates. When done successfully, settlement can reduce the principal balance of debt by over 50%, leaving a debtor with much less to pay for in the long run on top of having lower interest rates. This form of debt relief can offer consumers with the quickest path to financial freedom without causing as much damage to their credit profile as bankruptcy likely would, but there can also be some risks associated with settlement.

If a creditor is past the point of negotiation, settlement may no longer be an option, so it is best to discuss the details of your situation with a financial expert before deciding on which path is the right one for you.

Filing for Bankruptcy in Nashville

Filing for bankruptcy in Tennessee puts a halt to the collection process, but depending on what happens during the proceeding and which type is filed, the debtor may still be responsible for repaying some or all of the forgiven debt. Bankruptcy can be more damaging to your credit profile than settlement, but it can be a viable option for those who have little no other options.

How Debt Settlement Works in Nashville

Debt settlement is a form of debt relief that works by negotiating a repayment with creditors that is much less than the total due. The settlement amount can be up to 60% lower than the principal debt balance in the best-case scenarios. Once the creditor has received the full payment of the amount agreed upon in the settlement, the debt is considered to be repaid, but there is an asterisk left on that debt in your credit history noting that it was settled.

Advantages of Using New Era to Settle Your Unsecured Debts in Nashville

  • No upfront or add-on fees. Companies that charge a debtor for anything before the debt has been settled are breaking the law as debt settlement is a service that can only be legally charged for after the process has been completed. With New Era, you only pay a fee after the debt has been settled.
  • All-in-one service. Many settlement firms are actually sales groups that pass their clients along to another company to handle negotiations for the settlement. This can lead to multiple parties having access to your financial information and the sales group may have little or no control how the settlement process turns out in the end. At New Era, we handle cases from beginning to end with a team of debt experts that have years of experienced negotiating favorable settlements.
  • Experienced settlement firm. At New Era Debt Solutions, our team has over 20 years of experience and has settled over $275,000,000 in debt for our clients across the country. Over the years, we’ve built a history of success because of the relationships we’ve established with creditors which allow for the best settlement deals to be achieved. Check out our client testimonials to get an idea of what it’s like to work with our programs.

Start Your Journey to Freedom from Debt in Nashville Today

If you’re in need of debt help in Tennessee, contact New Era for a free analysis with a debt expert. Let us show you how much time and money you can save with the right type of debt relief solution for your financial needs. Contact us at New Era Debt Solutions to figure out your options for debt relief in Nashville.