Debt Settlement in Vermont
Consider Your Debt Relief Options
Below are brief descriptions of commonly used debt relief strategies.
1. Make Minimum Monthly Payments
Although it may feel like doing the right thing making at least some form of payment toward a debt, paying the minimum is often the worst strategy one can employ for relieving debt. Making minimum payments keeps you in the cycle of debt longer, costing significantly more in interest in the long run when compared to other forms of debt relief in Vermont.
2. Debt Management or Credit Counseling Program
Credit counseling is a debt management program in which you work with a counseling agency to organize your repayment structure.A single monthly payment is often made to the debt management company and they distribute the funds to creditors on your behalf, ideally, while securing a lower interest rate so the debt can be paid off faster. The disadvantage with credit counseling is that you still end up paying back 100% of the owed debt and any interest that has accrued. Additionally, these programs are designed to take between 3-5 years to complete, but they are mostly offered for free in the United States.
3. Debt Consolidation
Debt Consolidation is a form of debt relief that involves taking out a larger, low-interest loan and using that money to pay off higher-interest unsecured loans. In theory, this leaves you making a single monthly payment that is lower than what was being paid for before because of the reduced interest rates, but these types of loans can be hard to qualify for and the promotional interest rate may bounce back to a more normal rate if the consolidation loan is not repaid within the promotional window.
4. Debt Negotiation or Debt Settlement in Vermont
Unlike the previously mentioned debt relief strategies, Debt settlement is unique in that the actual principal balance you owe is negotiated downward in addition to lowering the interest rates. With less debt to repay in total and a slower rate at which interest is building, Vermont debt settlement can generally be a less costly & faster debt relief option than either debt counseling or debt consolidation.
Bankruptcy is often used as a last-ditch effort to relieve debt when there are virtually no other viable options. Formally declaring bankruptcy in Vermont halts the creditor collection process and the debtor is cleared of some or all of their responsibility to have to repay the debt, but their ability to borrow on credit is significantly reduced for years afterward as a result.
Learn About Debt Settlement in Vermont
How Does Debt Settlement Work?
Debt Settlement works by negotiating with creditors to settle a debt for less than what is owed on the principal balance. This is substantially different than Debt Consolidation and Credit Counseling which only reduce interest and do not affect the total debt balance. By directly negotiating the balance down, Debt Settlement provides a much faster means of reducing your debt in Vermont.
Most credit establishments and financial institutions are willing to accept a reduced payment on a debt, sometimes up to 60% off, as this is a better alternative than losing the entire debt in a bankruptcy proceeding. By settling, the creditor receives at least some portion of the debt they are owed rather than receiving nothing if they believe the debtor may file for bankruptcy.
You can include the following types of debt in a New Era Debt Settlement Program:
- Old judgments
- Credit cards
- Signature loans
- Personal lines of credit
- Department store cards
- Old repossessions
- Private student loans in default
- Other unsecured debts
The following types of debt do not qualify:
- Student loans from the federal government
- Car loans
- Home mortgages
- Credit Union debts
- Hospital/Medical bills
- Other secured debts
Vermont Debt Settlement Services by City
- Burlington Debt Settlement
- South Burlington Debt Settlement
- Rutland Debt Settlement
- Barre Debt Settlement
- Montpelier Debt Settlement
- Winooski Debt Settlement
- St. Albans Debt Settlement
- Newport Debt Settlement
- Vergennes Debt Settlement
Be sure to check with your Vermont debt counselor as this is not an exhaustive list.
Figure Out Where Your Finances Currently Stand
Are you burdened by a legitimate financial hardship condition?
Going through a divorce/separation, suffering injury that incurs significant medical costs, or a sudden loss in income are some of the most common causes of debt in Vermont. Each of these conditions creates a legitimate financial hardship that can happen to anyone through no fault of their own and any of these situations can create serious strain on your household budget.
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 Vermont, then Debt Settlement can provide an honest and ethical debt relief alternative.
Are you committed to getting out from under your debt?
Debt Settlement is an aggressive approach to debt relief that can it presents the occasional challenge. It is not a “free lunch” system for those who simply don’t feel like paying their bills.
Your ability to finish the program, even when the road gets a little bumpy, is often the biggest factor in determining how successful your settlement efforts are. For those who are committed to attaining freedom from their debt, a settlement program can help you through your financial difficulties more quickly and for a lower overall cost than nearly any other form of debt relief available in Vermont.
Is your debt mostly from credit cards?
Many forms of unsecured debt can be negotiated through settlement programs such as financing contracts, repossession deficiencies, personal lines of credit, signature loans, department store cards, and other miscellaneous bills. However, the largest debt reductions are most often obtained from negotiating credit card debts. So, if a good deal of your debt is from credit cards, then you can anticipate good results from using Debt Settlement as a strategy.
Can I Trust New Era to Handle My Settlement Properly?
By asking these 14 important questions of your potential debt settlement company, you can pick apart the good firms from the bad ones right away. It is also always a good idea to check with the Better Business Bureau (BBB) to see what the company’s average rating and complaint history look like with consumers from Vermont.
New Era has been helping Vermont consumers become debt free since 1999 and has settled more than $250,000,000 in debt for clients across America. We also maintain an A+ rating with the BBB. Visit our Testimonials page to see what past clients have had to say about our settlement services.
Here’s what makes New Era different:
- No “add-on” or “hidden” fees. Some debt settlement companies try to sneak into extra fees for things such as signing, consultation, or administrative purposes. These are just various excuses to get more money from you. Good guy debt settlement companies, such as New Era, charge only a settlement fee, which is not paid for until the debt has been settled.
- No Upfront Fees. A Debt Settlement company cannot legally charge you fees for settlement until the debt has been settled. Period. As per an FTC ruling effective October 27, 2010, this is not only the most ethical way to do business, it’s the only legal way to charge fees in the settlement industry. Any company trying to charge you upfront is breaking the law.
- End-to-end service. Some “debt settlement” company you may talk with are only sales groups that sell or pass their accounts off to a third-party firm to handle the negotiations. This means that your sensitive financial data is being passed around between multiple entities and the salesperson may have no control over how your debt is actually settled. Look for a company who will handle your settlement from start to finish, such as New Era.
- Experience. Many new debt settlement companies headed by prior mortgage professionals popped up with the crash of the sub-prime mortgage industry in the 2000’s. These new settlement companies do not have the experience or the relationships with creditors that lead to your best settlement deals. If you’re looking for someone to reduce your debt, you want to look for a firm with enough history to amass a solid track record of successful settlements. For example, New Era has been settling debts for over 20 years and our team of experts has settled more than $250,000,000 during this time.
Get Started with Debt Relief Today
New Era negotiators are experts at getting you some awesome deals in Vermont, but the offers don’t last forever. The most successful debt settlement clients in Vermont are ready and willing to respond immediately.
Vermont consumers can contact New Era for a FREE debt evaluation today. See how much time and money you can save with the right debt relief program. Contact New Era Debt Solutions to get started.