When the headquarters for one of the world’s most famous cruise lines and one of its best amusement parks both call your town home, you know you live in a special place. Santa Clarita residents also enjoy television notoriety with the Showtime series “Weeds” and the Netflix series “Santa Clarita Diet” both having been set there.
Of course, if you’re living in the area and having financial problems, cruise ships, roller coasters and TV shows are probably the farthest thing from your mind. If this accurately describes your situation, you’ll benefit from consulting with a debt solutions firm like Freedom Debt Relief. However, before you do, here are the answers to some debt settlement questions Santa Clarita residents need to ask.
How Will I Know If Settlement Is the Best Approach?
If you’re talking to someone about potential debt solutions and they go straight into trying to sign you up without evaluating your situation, something’s amiss. Reputable firms will assess your circumstances to determine the best course of action.
And frankly, it isn’t always debt settlement. It’s just as likely to be debt consolidation for Santa Clarita residents or credit counseling. In certain cases it might even be filing for bankruptcy protection. Gaining a clear understanding of these points up front—and understanding the differences between them— can save you a lot of anxiety and money.
Debt Settlement: How Does the Process Work?
Debt settlement professionals offer creditors payment options in exchange for certain concessions. Basically, they say you’ll pay the loan off if they (the lender) will reduce the total amount you owe. Given it’s better to work with you and get something rather than forcing you into bankruptcy and risk getting nothing they may agree to accept a lower amount.
Rather than sending money to your creditors each month, you’ll make deposits into an FDIC-insured escrow account to build up the fund from which those payments are disbursed. This usually triggers collection calls, to which you’ll respond by telling them you’re working with a debt settlement firm to resolve the situation.
Will This Affect My Credit Score?
Creditors routinely report settlements to the major bureaus and this will lower your score. Keep in mind, debt settlement isn’t a credit repair solution, it’s a debt relief solution. With that said, you can begin rebuilding your credit rating once your debts are settled.
What Are the Tax Consequences?
This depends upon the amount of debt forgiven and the nature of the companies with which you reach the settlement agreements. Some report forgiven debt to the IRS, others do not. Given the nature of your financial situation it’s best to operate under the assumption it will be reported rather than risk more trouble.
How Are You Compensated?
Once a debt is settled to your satisfaction and paid, the relief company will bill you for its services. Federal law prohibits charging you up front to settle a debt on your behalf. Reputable companies will present you with a full explanation of the costs before you sign up. Fees are usually based upon the amount of debt you have outstanding.
How Long Have You Been Around?
The most effective companies have track records of at least 10 years, as well as affiliations with organizations such as the American Fair Credit Council. This longevity means relationships with a wider range of creditors, while these affiliations require adherence to higher standards of conduct.
Can You Give Me a Guarantee?
As counter-intuitive as it sounds, anybody automatically answering yes to that question shouldn’t be trusted. Creditors decide whether or not to accept revised terms on a case-by-case basis. Yes, they do accept them in a lot of cases, but not always. Reputable firms disclose this.
Are There Other Options?
Of course! Your financial situation is unique, and you shouldn’t allow yourself to be pushed into any proposed debt solution without understanding how it will affect you. If debt settlement doesn’t fit your needs, don’t worry. There are still other options out there for you. Explore debt consolidation for Santa Clarita suburbanites, debt management programs, credit counselling and more. You might just find the ideal solution to lead you out of debt and into a comfortable space of financial freedom.
Request a free debt evaluation to find out how we could help you:
- Resolve your debt faster
- Significantly reduce what you owe
- Make one low monthly program payment
Debt Relief for Santa Clarita Residents
When it comes to considering Santa Clarita debt relief providers, residents asking these questions are more likely to find an honest company capable of resolving their debt. Having helped thousands of people just like you, Freedom Debt Relief is one such organization.
Call them at 800-910-0065 today to find the best solution for you. Trained professionals are available seven days a week and the call is free.