Taking the First Steps Towards Debt Settlement
Nearly half of Americans suffer from some form of credit card debt. In the wake of COVID-19 – a period in which many people find themselves out of work and without a regular source of income – this number continues to rise. Although credit cards are an effective means of establishing credit, they can turn into a problem if the balances aren’t kept under control. Carrying high credit card balances equates to high monthly payments, a large portion of which will accumulate interest.
If you’ve found yourself in a situation where you’ve incurred a large amount of credit card debt and can’t keep up with the minimum payments, then you may want to consider your options in regards to debt relief, and specifically, debt settlement.
What is Debt Settlement?
For those that are struggling with debt, there are other options beyond filing for bankruptcy. Although bankruptcy is often the most cost-effective form of debt relief, it may not be the ideal solution for those with a significant amount of unprotected property (“non-exempt assets”) or higher income. In those circumstances, filing for bankruptcy could mean that you pay back all or the majority of your debt.
Some of our clients – especially those with large amounts of credit card debt – find that debt settlement is a more attractive option because it could mean only paying a fraction of what they owe. Every creditor is different, of course. Most are willing to take what they can get if it means getting payment in a timely fashion. Historically, we’ve seen balance reductions of around 50% with credit card institutions and medical bills. The key is having someone with experience in these matters negotiate the settlement terms.
Other key elements to keep in mind when considering debt settlement:
- Are your debts in default? If you’ve stopped making payments, the creditor probably considers you a risk and might be willing to cut a deal. If you’ve been making regular payments, they have no reason or incentive to do this. Being in default works to your advantage when it comes to settling debt.
- Do you have debt settlement cash ready? Many creditors are willing to accept far less than what they are owed if it means getting the money right away. This means you would have to come up with the cash to pay off the reduced amount, or you won’t get the deal.
- What types of debt do you have? That settlement doesn’t work on all types of debt. Typically, only unsecured debt, such as credit cards and medical bills, can be settled.
Mike and Gigi Wink have been helping individuals in the Denver area evaluate their respective situations and determine what debt relief path is best for them for years. They are experts in the field of dealing with creditors and negotiating debt settlement.
If you’re interested in pursuing debt relief, the first step is setting up a free consultation and providing us with some basic info.
What Can I Expect During A Debt Relief Consultation?
Setting up a consultation doesn’t mean you’re succumbing to defeat at the hands of your debt. Quite the opposite. It means that you’re finally ready to bring in strategic partners that can help you identify the best way to eliminate it. At Wink & Wink, we know that everyone’s situation is different, and so we like to have as much information as possible so that we can tailor our approach specifically to you.
Before your consultation, we’ll need to collect some basic information.
- Household info: your name, age, address, and so forth. We’ll also need to know your marital status and how many dependents you have.
- Income: in order to determine your debt-to-income ratio and ability to repay debt, we need to know how much money you make.
- Assets: this includes houses, vehicles, land, investments, and other major items that are in your possession.
- Debt: credit cards, medical debt, student loans, back taxes, or any other debt that would appear on your credit report. This is the second critical part of determining your debt-to-income ratio.
To get started, head over to our official Online Consultation Questionnaire and fill out the forms to the best of your ability. This is a short process and gives our team enough information to evaluate your needs and provide recommended next steps during the consultation.
Due to COVID-19 and enhanced safety protocols, all consultations are being conducted remotely until further notice. Feel free to contact us if you have any questions.