Top 5 Questions About Debt Settlement
Your credit score affects everything from approval of a lease, ability to purchase a vehicle to your insurance rates. Recently many prospective employers have even begun to review your credit before considering offering you a position. Building a positive credit history can determine your success in the future; debt settlement may be the answer. There are a lot of questions that arise before and during the debt settlement and debt negotiation process. Here are the top 5 questions we come across at Trident Debt Solutions.
What is debt settlement and is it different from debt negotiation?
Negotiation is the process and debt settlement or resolution is the outcome. We work with your creditors to come to an agreed upon settlement of your debt. Many creditors understand that receiving a lump sum, even a portion of the original debt, is a better conclusion than suing the debtor, a costly proposal, or having the debtor declare bankruptcy and receiving nothing. As a skilled debt settlement attorney, Stephen T Craig has the experience and knowledge to work through the challenges of the debt settlement process.
What kinds of debt can Trident Debt Solutions help me with and am I qualified?
Trident Debt Solutions specializes in credit card debt. We do not manage settlement of student loans, medical bills, auto loans or home mortgages. Credit card debt is perfect for debt settlement because it is unsecured, not secured by a piece of your property. We work with clients who have at least $30,000 in unsecured debt and either have a lump sum of cash available to pay off creditors for 50–60 cents on the dollar or can reasonably expect to raise approximately 50–60 cents on the dollar, within 24 months or less. If the client is raising money over 24 months we as that they make monthly contributions of at least 2-3% of their debt amount. Another client may choose to use a combination of a lump-sum payment with a smaller monthly payment. Even if you are not qualified for debt settlement, Trident Debt Solution can recommend what solution is perfect for your debt problem.
Does Debt Settlement Affect my Credit?
When you have unresolved debt and have started to fall behind on your payments, your credit score has already taken a negative hit. If your creditors mark your payment as a settlement, this debt, though paid off, could remain on your credit report for as long as 7 years. Request that your creditor report that the debt has been “paid in full”. If all your debts appear to have been “paid in full”, and you commence building a positive credit history, your credit will soon be restored. Our clients report that once we have settled a few debts, their FICO score begins to rise because of an improved debt-to-income ratio.
How much will Debt Settlement Cost me?
Including all fees, debt settlement with Trident typically costs about 50 to 60 cents for every dollar you owe. Unlike most debt settlement firms, Trident Debt Solutions calculates fees at 25% of the money we save you through debt negotiation, rather than as a percentage of your total debt amount. This means that we have an incentive to settle for the lowest possible rate. Furthermore, we guarantee our results: If we don’t save you more than 30% of your total unsecured debt, we’ll charge you nothing.
How long until I can be Debt Free?
We aim to make you debt free within 24 months or less. Every case is different based on the debts, the creditors and the agreed upon terms of the settlements. Debt settlement is a way to become free of your debts without declaring bankruptcy and restoring your credit. In time you can expect your FICO score to return to where it was before you stopped paying on your credit cards.