Wyoming is fifth in the nation in terms of poverty levels. The state boasts a population of approximately 570,000, and more than 63,000 residents live below the poverty line. The unemployment rate is a staggering 4.3%, which is seventh in the nation in terms of unemployment. The high school graduation rate is a low 77%, and only 37% of residents hold any sort of college degree. Surprisingly, however, the average median household income in Wyoming is $60,214. This is more than $4,000 more than the national average, which places it higher on the list than many other states.
Of the 23 counties in Wyoming, Campbell is the wealthiest with an average annual household income of $76,576. The poorest county is Hot Springs, with an average annual household income of only $42,469. The income disparity is significant, and the people who live in Wyoming are no strangers to debt. With the average American household carrying around $16,000 in just credit card debt, Wyoming residents often find they need help paying their debts and getting out of their financial mess. Unfortunately, most people who have debt they can’t afford to repay also have a low credit score that prevents them from finding a consolidation loan with a bank or credit union. This leaves many people wondering about debt settlement, how it works, and how they can benefit from taking such drastic measures.
Debt Settlement Laws and Regulations in Wyoming
Wyoming law consists of several laws concerned debt settlement. It’s the act of taking your bills, consolidating them all into one payment with a company that specializes in this, and settling the amounts you owe into smaller amounts you can afford to pay. The interest rates you’re paying on all your bills are eliminated, and you pay only one interest rate, one payment, and one company until your debts are paid in full.
The law requires anyone who wants to settle debts in Wyoming must already be behind on their payments before they can apply, they must be willing to make the payments, and they must show financial strain. The law also states only specific types of debt may be consolidated. If you want to settle your debts, they must fall into one of the following categories:
All loans you want to pay back must be unattached to a tangible piece of property otherwise referred to as collateral. You cannot settle debts such as a car, a home, or any other personal property. In addition to these laws, it’s imperative to understand debt settlement is not for all Wyoming residents. If you want to settle your debts and get out of debt for good, you must meet the following criteria.
- Have at least $7,500 in debt
- Be late on your payments
- Have missed several payments
- Have financial stress
It’s not for everyone. If you can afford to make your minimum payments without missing any, this is not the answer for you. You don’t want to start making late or missing payments to go through debt settlement. The effect on your credit score is not worth this.
The Benefits of Debt Settlement
Debt settlement is beneficial to anyone who has debt they cannot afford to pay. Your debt consolidation company works with your creditors to lower the amount of money you owe each one. Say you have a credit card with a $20,000 balance on it you cannot afford to pay. The consolidation company offers to settle this debt for far less, sometimes as much as 40% less than what you owe. Now you have a chance to pay it off for far less. The creditors you settle with will stop reporting your accounts as delinquent, so your credit score will not drop any further.
With only one payment, one interest rate, and one debt to pay, you can more easily manage your finances. Bankruptcy can be avoided, and you will not get any collection calls following a settlement with your creditors. Your credit score is going to suffer as a result of the missed and late payments you’ve made, but you can stop the negative reports and work on raising your score from this point on. It takes 7 years for negative credit items to fall off your report but once that happens, your credit score rises significantly.
Debt settlement is not a good option for anyone who can make their payments but wants to settle them for less. The negative effects on your credit take years to disappear, and your ability to finance a home or car, to obtain a new credit card, or to secure any type of low interest rate on anything declines significantly with your new low credit score.