Home to almost 1.9 million residents, West Virginia is a beautiful state that offers the promise of a tranquil, relaxed life surrounded by the beauty of unspoiled natural areas and friendly hospitality. While the area has many natural areas for residents to enjoy in their free time, there are also several urbanized hubs that offer exceptional employment opportunities in a wide range of sectors. Some residents have worked hard to achieve a debt-free status and to live with financial security in West Virginia. Others, however, are overwhelmed by debts that they can no longer afford to pay for and feel the stress associated with a tight budget on a daily basis. If you have been unable to make minimum monthly payments on your debts and are looking for financial relief, debt settlement in West Virginia may be the right answer for you.
What Personal Finances Look Like in West Virginia
Like other states, West Virginia has its fair share of wealthy individuals, and many of these individuals do not carry credit card debt. The average West Virginian, however, struggles to make ends meet because of a relatively low income and high expenses with credit card payments and other debts. The U.S. Census Bureau states that almost 18 percent of West Virginians are in poverty. Those with an average income level are not fairing so well either. The average per capita income in the state is $23,450 per year. Despite this low income level, many West Virginia residents are forced to pay for high housing expenses. The typical mortgage payment that homeowners in West Virginia pay is $966. Renters pay $643 per month as housing rent. With such high housing expenses and a low income level, you can see that very little money is left over each month to pay for other common expenses as well as credit card and loan debt. Debt settlement may help you to reduce your overall expenses so that you can manage your budget more effectively and comfortably.
What Is Debt Settlement?
Debt settlement is a common form of debt relief that is most commonly used by those who have fallen behind on their monthly payments. It requires you to contact each of your credit card companies and other lenders to request that they settle the debt with you. Essentially, you are asking them to reduce the amount owed to them. Most will not agree to settlement if you are still current with your payments, and other forms of debt relief are generally used if this is the case. Debt settlement has two key benefits. First, it reduces your monthly debt payments immediately, making them easier for you to pay each month. Second, it speeds up your debt reduction efforts and can help you to achieve a debt-free status more quickly. Keep in mind, however, that your creditors are not required to agree to a settlement. There are strategies and techniques that can be used most effectively with this process, and a professional debt negotiator may help you to generate top results from debt settlement.
Who Qualifies for Debt Settlement?
In most cases, your creditors will not agree to settle debt if you are current on your accounts. With this in mind, the ideal candidate for this type of debt relief has already made late payments to creditors. In addition, this type of debt relief can negatively impact your credit rating. The ideal candidate therefore typically already has a lower credit rating and is less concerned about the impact this process will have on his or her credit scores. If you have a good credit rating that you would like to preserve, debt consolidation may be a better form of debt relief to consider.
Which Debts Can Be Settled?
Before you begin the debt settlement process, take note that not all debts that you have can be settled. For example, settled debts are typically unsecured and are owned by a private bank or lender. If your debts are secured or are backed by the government, they will not qualify. Generally, this rules out auto loans, home mortgages and most types of student loans from consideration. Credit cards and some types of student loans and other unsecured debt may be considered. If you believe that debt settlement would not provide effective relief based on your situation, bankruptcy may need to be considered.
If you are unable to make minimum monthly payments on your debts and are looking for a feasible solution to this problem, debt settlement may provide the relief you seek. This solution is not viable for every debt situation, and keep in mind that debt consolidation and bankruptcy are other options you can consider if settlement will not work for you. Take time to explore the options to make the best financial move possible.