Debt Settlement in Utah
Consider Your Debt Relief Options
Below are 5 methods of debt relief that others from Utah have utilized to clear their names.
1. Make Minimum Monthly Payments
It might feel like you’re doing the right thing by making some form of payment towards a debt, but paying only the minimum is often the worst strategy for relieving debt as it keeps you paying longer and costs more in interest in the long run.
2. Utah Credit Counseling or Debt Management
In Utah, many credit counseling and debt management programs are free. These programs often allow you to make a single payment to a credit counseling agency who then distributes the money to creditors on your behalf. Ideally, the debt management firm can secure lower interest rates in the process of working with your creditors, but in the end, you still end up paying back the entirety of the debt principal and any interest that has accrued. These programs have very low completion rates in Utah and are typically designed to take between 3 to 5 years to complete.
3. Debt Consolidation Card or Loan
Debt consolidation is a form of debt relief where you take out a larger loan with a low-interest rate and use the injection of capital to pay off other unsecured debts that have higher interest rates. This can leave you making a single, lower monthly payment that’s lower than what was being paid for in total before, but these types of consolidation loans can be hard to qualify for and can hit you with a high-interest rate if the debt is not repaid within the promotional window.
4. Utah Debt Settlement or Debt Negotiation
Debt settlement is a different form of debt relief altogether because it not only works to reduce the interest rates applies to your unsecured debts, but can also work to reduce the total balance of debt through negotiation. This is different from both consolidation or counseling which only reduces the interest. With much less being owed on the principal balance, debt settlement can generally be a faster and less expensive option when compared to debt consolidation or debt counseling.
5. Filing for Bankruptcy
Bankruptcy may be an inevitable outcome for consumers in Utah who simply cannot meet their debt obligations and whose creditors are no longer willing to negotiate a settlement. Formally declaring bankruptcy puts an immediate stop to the creditor collection process, and the debtor is relieved or some or all of the unsecured debt based on which type of bankruptcy they filed for.
How Does Debt Settlement Work in Utah?
Debt Settlement is a process of negotiation with creditors to secure a settlement deal to repay unsecured debts. During this process, the total balance owed (principal) on your unsecured personal debt accounts is negotiated down, often reducing the balance by up to 50%. Additionally, the interest rates can be reduced through this negotiation process as well. The right settlement deal can have you owing significantly less and accruing far less interest at the same time, providing a quicker route to freedom from debt than many other forms of debt relief. This is different from Debt Consolidation and Credit Counseling, which cannot affect the total balance of debt and only work to reduce the interest rates.
Why Are Creditors Willing to Negotiate Unsecured Debts?
While not all creditors are willing to negotiate, most creditors are willing to accept payments of much less than the balance owed because this is a better outcome for them than losing the entire debt if the debtor decides to file for bankruptcy instead of trying to repay it.
Types of Debts Eligible for Settlement:
- Old judgments
- Credit cards
- Old repossessions
- Department store cards
- Signature loans
- Personal lines of credit
- Defaulted, private student loans
- Other unsecured debts
Types of Debts That Do Not Qualify for Settlement:
- Federal student loans
- Home mortgage loans
- Car loans
- Credit Union debts
- Medical / Hospital bills
- Other forms of secured debt
Utah Debt Settlement Services by City
- Salt Lake City Debt Settlement
- West Valley Debt Settlement
- Provo Debt Settlement
- West Jordan Debt Settlement
- Sandy Debt Settlement
- Orem Debt Settlement
- Ogden Debt Settlement
- St. George Debt Settlement
- Layton Debt Settlement
- South Jordan Debt Settlement
This list is not exhaustive. Be sure to check with your Utah debt counselor.
Figure Out What’s Best for Your Finances
Are you burdened by a legitimate financial hardship condition?
A majority of the debt problems in Utah are caused by a sudden loss of employment or income, medical costs, or divorce/separation. Each of these events can create significant strain on a household budget and all of them can happen to anyone through no fault of their own.
If you’ve found yourself buried in unsecured debt and you’d prefer to work things out with creditors rather than declare bankruptcy, then Debt Settlement can provide an honest and ethical debt relief alternative.
Are you committed to getting out from under your debt?
A debt settlement program is not a “free ride” back to financial freedom for those who don’t want to repay their debts. It’s an aggressive approach to debt relief that can present an occasional challenge. What most often determines how successful you are in a settlement program is your level of commitment to staying the course, even when the road gets a little bumpy. For those who are willing to see it through to the end, debt settlement can get you through your financial difficulties faster and at a lower cost than nearly any other method for relieving debt in Utah.
Are your debts primarily from credit cards?
Most of the different types of unsecured debt can be negotiated. This includes financing contracts, repossession deficiencies, miscellaneous bills, lines of credit, signature loans, department store cards, and more. However, the largest discounts from debt settlement are usually obtained from credit card debts; so, if a good portion of your debt load is from outstanding credit card accounts, then you can anticipate good results from utilizing a debt settlement strategy.
Can I Trust New Era?
By asking 14 important questions, you can pick apart the good settlement firms from the bad ones. It’s also always a good idea to check with the Better Business Bureau (BBB) to see what the company’s complaint history and average rating looks like with consumers in Utah.
New Era Debt Solutions has an A+ with the BBB and is proud to have been helping Utah consumers become debt free since 1999. We’ve settled more than $275,000,000 in total debt and worked with clients from all across the country. But don’t take our word for it, visit our Testimonials page to see what it’s like to work with one of the best in the industry.
Here’s what makes New Era different:
No Upfront Fees. As per an FTC ruling effective October 27, 2010, a Debt Settlement company cannot legally charge you any fees unless or until they settle your debt. Period.
- No “add-on” fees. Some settlement firms try to circumvent the law by charging consultation fees, administrative fees, signing fees, or other various other excuses to get money from you upfront. Ethical settlement companies, such as New Era, charge only a settlement fee which is not paid for until the debt is settled.
- End-to-end service. Some companies that claim they are debt settlement firms are only sales groups who will sell or pass your account off to a different company to handle the settlement. This means that your sensitive financial data is being passed around between multiple third parties and the sales group you originally talked to has little control or interest in how your debt is actually settled in the end. You should always look for a settlement firm such as New Era who will handle the entire process in house.
- Years of Experience. With the crash of the sub-prime mortgage industry in the 2000s, many mortgage industry professionals jumped ship to become debt settlement firms. These newer settlement companies lack the experience or the relationships that lead to the best settlements in the industry. New Era has been settling debts since 1999 and we’ve settled more than a quarter of a billion dollars in debt for our clients.
Get Started Today
New Era negotiators are experts at getting you some awesome deals in Utah, but the offers don’t last forever. The most successful debt settlement clients in Utah are willing to respond immediately.
Get in touch with a New Era debt expert today for a free consultation. We will show you how much time and money you can save. Contact New Era Debt Solutions to get started.