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Dallas is one of the largest cities in Texas, and it’s also one of the cities with the biggest income disparity. For many Dallas-area residents, there is nothing but wealth. In Rockwall, the average household income is $86,597 per year. Those families live well, and they have few complaints. Most of Dallas is the same way. It seems Dallas residents have a relatively high annual household income bringing in approximately $61,644 per year. It would seem to some that the number of people making a good living in a city with a relatively low cost of living is impressive, but it’s not the case.

The average amount of debt Dallas households carry is high. It’s the highest of the 20 biggest metropolitan cities in the country at $28,240. This means many people make a lot of money, but they can’t afford to pay their unaffordable debts. With more than 27,000 Dallas residents living in exceptional poverty, debt settlement is more than just a consideration for families. It’s the only way they can get out of debt and hope for a brighter financial future.

Debt Settlement As An Option

If you’re wondering about debt settlement as an option for your family, there are many things to consider. The first is whether it’s for you. If you can answer yes to the following questions, you are probably a good candidate for debt settlement.

  • Do you have more than $7,500 in debt?
  • Is your debt unsecured debt such as credit card debt or medical bills?
  • Are you already late making payments to your creditors?
  • Have you missed many payments to your creditors all together?

If you can answer yes, you’re a good candidate. The law states only debts that are unsecured quality for a settlement program in Dallas, and it also states no creditor is under any legal obligation to accept any settlement offers. This is why being late or missing payments makes you a good candidate for debt settlement.

Creditors are more likely to accept your offer of a settlement if you haven’t made any payments to them for some time. This means you’re not paying them anything, and they want some money. They’re going to be more likely to accept your settlement offer if you haven’t given them anything. If you continue to pay on time and not miss payments, they almost always deny your settlement offers.

Don’t stop paying your bills to become a debt settlement candidate. It might seem like a great way to lower the amount of debt you owe, but the damage to your credit is devastating. Your best option is to settle your debts with your companies only if you’re already late. Every late payment has a negative effect on your credit score, and it stays on your report for seven years. This makes it more difficult to secure loans, to get good interest rates when you are approved for loans, and it makes life more difficult.

Benefit of Debt Settlement

If you have already damaged your credit thanks to your debt, you can only benefit from settlement options. Your settlement company can negotiate a settlement that’s much lower. They can get your debt down by as much as 40% of what you owe, which enables you to afford your debt. You can pay it off faster, and your debts are all rolled into one monthly payment eliminating numerous interest rates. Your interest rates are all going to disappear and are replaced with only one rate, which is much more affordable.

In terms of your credit report, your creditors agree to stop reporting payments as late or delinquent following your settlement offer. This doesn’t improve your score, but it does make it easier for you to raise your credit score and improve your credit history. Any negatives remain on your report for the next seven years, but they also look better to creditors as more time goes by between your last late payment or missed payment.

Dallas Debt Settlement Resources

Debt settlement companies are everywhere for Dallas residents, but that doesn’t mean they’re all good ones. The best way to tell whether the company you choose to work with is reputable and good at what they do is to check with the local Better Business Bureau. You can use a debt settlement company with a good rating, or you can utilize the help of an attorney with a good rating to settle your debts. Just remember a reputable company will never ask to take your money before they settle your debts and begin the program. Any that do ask for money upfront are sending you a red flag, which means it’s time to walk away and stop working with that company.

Settling your debts means you’re already in a financial bind, but it’s a good start toward getting out of that mess. Now is the time to get your financial life in order. The sooner you begin making payments to a debt settlement program, the faster you can get that paid off and begin living a more affordable life.