Debt settlement is a financial option for many Orlando residents living with excessive debt. In Florida alone, the average amount of credit card debt people live with is approximately $5,800. That doesn’t include student loan debt, mortgage debt, or even car debt. This is strictly credit card debt. With the average Orlando resident earning approximately $54,000, many residents live comfortably without debt as a consideration. When debt enters the picture, it changes the face of the game for many Orlando residents. It’s now difficult to make ends meet even paying the minimum payment.
Many consumers fall behind on their bills when this occurs, and it means their credit score suffers. If you’re already behind on your credit card payments, now is the time to consider the benefits of debt settlement. It’s not for everyone, but it is beneficial for those who are in a financial hole without any hope of getting out. The poverty level in Florida is 13.8%, but the poverty rate in Orlando is even higher at 14.9%. If you fall below the poverty lives due to your excessive debt, you might want to consider the benefits of debt settlement in Orlando.
Debt Settlement Laws in Florida
- Your debt must be unsecured debt such a credit card and medical bills
- You must already be late or miss several payments to qualify
No creditor is required by law to accept any offer of settlement. The purpose of debt settlement is to provide you with financial relief to help you make payments. Your debt settlement attorney or counselor contacts your creditors to close your accounts and offer them a portion of what you owe. They are under no obligation to accept this offer, but most do because you’ve already shown them you’re not afraid to miss payments or make severely late payments.
If you’re interested in applying for debt settlement in Orlando, the Better Business Bureaus is the place to go to find a reputable law firm or company to help you with your debt settlement. There are dozens of attorneys and debt settlement programs in the city, but you want to use one with an A rating and a great reputation.
The Benefits of Debt Settlement Relief
It’s not easy to see how this can benefit you when you’re so far behind paying your bills and making ends meet, but it’s entirely possible to make debt settlement work for you. There are several benefits.
- You pay off your debts faster
- You pay off your debts for less than you owe
- You save money
- You get rid of numerous interest rates
- Your creditors stop reporting your late and missed payments to the credit bureaus
- You free up income
Remember, you cannot just settle your debts if you’re not already in a financial bind. You must already be behind on your payments or missing payments all together. Creditors are not going to accept a settlement offer from a consumer who is paying at least the minimum payment on time every month. They’re not missing out on anything, but they are getting more interest from you. When you stop making payments, they are more likely to settle your debts so they get something you owe them rather than nothing.
The downside of debt settlement is realizing you qualify for it. The best candidates for debt settlement have bad credit since they’ve missed payments and accrued so much debt. They cannot afford to apply for a debt consolidation loan with a bank, and they have no other options. The cycle is a devastating one, but the benefits are numerous.
Debt Settlement and Your Credit
Settling your debt for less than you owe will not repair your credit score, but it allows to begin the process of repairing it. Your creditors will agree to stop reporting your accounts as delinquent when you enter into a settlement agreement. This doesn’t remove delinquent and late payments from your credit report. Those remain for up to 7 years. However, no more are reported, giving you a more recent history of on time and satisfactory payments.
Perhaps the biggest benefit to consumers regarding debt settlement is the end of all the phone calls. Debt collectors are relentless and ruthless, and the calls are never-ending. You can put a stop to these calls by settling your debts and placing a debt settlement company or attorney on the receiving end of debt collection phone calls. It’s a great way to help yourself make ends meet and to focus on creating a stable financial future.
Debt settlement is not for everyone, but it’s for those who are living paycheck to paycheck unable to make ends meet. With so many great attorneys and debt settlement companies located in Orlando, anyone can find the help they need when they need it most. It’s not impossible, and it’s a great start to a brighter financial future.