If you're a homeowner struggling to keep up with the monthly minimum payments on your credit card bills, business loans and other outstanding unsecured debts, you're not alone. Plenty of folks around the nation are in your position, barely keeping their heads above water as home values decline and the economy continues to muddle along. The need credit card debt relief and they need it now.
You may believe you'll be able to carry on until you're in a position to pay off your debts, but time is not on your side if you're paying monthly late fees and extortionate rates of penalty interest. Although you may not want to admit it, the high cost of your debt may prevent you from overcoming it on your own. The sooner you get in touch with a national debt consolidation program provider, the sooner you'll be able to reduce the total amount you owe and pay off your creditors once and for all.
One thing is for sure: If you're carrying a total balance of $10,000 or more, your creditors will do everything in their power to make life miserable for you. The threatening letters and harassing phone calls you've likely already received are only the beginning. Banks and credit card companies won't hesitate to send collection agencies after you, visiting you at your home or business to demand timely repayment.
Unfortunately, if you're currently employed, your creditors also have the right to attack your pocketbook without your consent using a legal process known as "wage garnishment." For example, Arkansas law exempts from wage garnishment if the greater amount is either 75 percent of your weekly paycheck or 30 times the minimum wage, but anything beyond that is fair game for your creditors to take before you see a dime.
Twenty-five percent of your weekly earnings is serious money that you no doubt count upon to keep current with your bills and buy necessities for your family. In addition, Arkansas law allows your creditors to charge you penalty interest of 6 percent or more, depending on current interest rates, on your delinquent balances. For every $10,000 in outstanding debts, that works out to a minimum of an extra $600 per year!
If you've been struggling to keep up with your bills for years, you may be wondering if your creditors retain the legal rights to your older debts.
Unfortunately, Arkansas law provides for a statute of limitations of three years on credit card debts and open business lines of credit, five years on written loan contracts, and ten years or more on state or federal judgments. In other words, banks and credit card companies can legally pursue you for debts that stretch back for years.
You may be ready to push the panic button on your outstanding debts, but don't fall for all the debt consolidation loans advertised. Although these loans are advertised as permitting you to pay off your existing debt quickly, they don't actually reduce the balance that you owe, and they may actually make your situation worse.
This is because debt relief providers charge high rates of interest. If you're blessed with a middling credit score, you can expect to pay between 14 to 20 percent on your loan; if your credit is poor, you may be in hock for as much as 25 percent of your principal amount each year. With a typical term of 60 months, a $10,000 loan may cost you nearly that much in interest alone!
Attorney-led debt relief programs are another option, but it can also cost far more than advertised. Many debt negotiation attorneys will charge you two major fees before you see any payoff: an initial consultation fee of 5 percent and a standard monthly account maintenance fee of around $50, which over several years can add up to thousands of dollars.
National credit card debt relief programs have better success rates than attorney-led negotiations, typically slashing outstanding debts over two to four years. They're also far cheaper, with no up-front fees and a final cost directly related to how much you save.
Arkansas debt relief programs negotiate a settlement on your behalf and arrange for you to make a single lump-sum payment that brings your balance to zero. There are no interest payments or ongoing fees associated with your debt settlement, which helps you save money and quickly rebuild your credit.
Don't wait a second longer to get in touch with a provider of debt consolidation services. Remember, your creditors want you to procrastinate: Every day you wait is another day of accumulated late fees, interest charges and garnished wages. Call us during extended business hours or fill out the convenient online form today to schedule a free debt analysis and get yourself back on the road to financial freedom!