Miami Personal Debt Relief and Personal Debt Settlement[yoast-breadcrumb]
Finding Financial Freedom in Miami with Personal Debt Relief
Dealing with overwhelming personal debt can feel isolating. You may feel like you’re drowning with no way out. But you’re not alone. Many people in Miami struggle with burdensome debt from student loans, medical bills, credit cards, or other sources. The good news is there are solutions that can help you find financial freedom again.
At [Delancey Street Financial](https://www.delanceystreet.com), we understand how stressful and depressing debt can be. We’ve helped countless clients in the Miami area get out from under crushing debt and regain control of their finances. Unlike predatory lenders, our goal is to help you – not profit off you.
Debt Settlement – A Light at the End of the Tunnel
If you owe $10,000 or more in unsecured debt like credit cards or medical bills, debt settlement may be a good option. This involves working with creditors to settle your debts for less than you owe. Many creditors will accept less than the full amount if you pay in a lump sum.
Here’s a quick rundown of how debt settlement works:
- You stop paying your creditors and instead make monthly payments to a dedicated savings account.
- Once enough funds accumulate to make settlement offers, we negotiate with your creditors to settle for a fraction of what you owe.
- If a settlement is accepted, you pay that lowered amount as a lump sum to close out the account.
This can allow you to become debt-free much faster – usually within 2-4 years. With credit counseling or debt management plans, it often takes 5+ years to pay everything back.
The [Florida Debt Collection Practices Act](https://www.flsenate.gov/Laws/Statutes/2011/559.55) regulates what collection agencies can and can’t do in pursuing debts. For example, they can’t harass you with constant calls, make threats, or sue you after the statute of limitations expires. Knowing your rights is important.
Now debt settlement does come with some downsides:
- Your credit score will drop temporarily while not paying creditors.
- You may get sued by creditors, although judgments are rare.
- Settled debts can be taxed as income.
But for many people, the pros outweigh the cons. It’s about finding a manageable path to becoming debt-free as fast as possible.
Finding the Right Miami Debt Relief Company
Choosing the right debt relief company is key. You want to look for:
- No upfront fees – fees should only be based on settlements
- Experienced negotiators to get the best settlements
- A+ rating with the Better Business Bureau
- Member of the [American Fair Credit Council](https://www.americanfaircreditcouncil.org/)
Beware of debt relief scams in Miami that overpromise and underdeliver. [The FTC has sued several fraudulent Florida debt relief companies](https://www.ftc.gov/news-events/press-releases/2018/06/ftc-state-florida-halt-florida-based-debt-relief-scheme) for charging illegal upfront fees and not providing services.
At Delancey Street Financial, we’ve been helping Miami residents with debt relief for over 10 years. We have an A+ BBB rating, zero upfront fees, and a 97% success rate negotiating settlements on our clients’ behalf. You can feel confident we will have your back.
The Debt Relief Process with Delancey Street
If you choose to work with us, here is an overview of how the process works:
- Free consultation – Review your financial situation and discuss debt relief options
- Client agreement – Official paperwork and setting up your savings account
- Stop paying creditors – Halt payments so funds can accumulate
- Negotiate settlements – Our experts negotiate with your creditors for reduced payoffs
- Settlement payments – Lump sum payments made from your savings to satisfy debts
- Become debt free! – With perseverance, you can eliminate your burden in as little as 2 years
Throughout the process, you will have a dedicated account manager to answer any questions. We will handle dealing with intimidating creditors so you have less stress.
Many of our clients describe the feeling of freedom once they complete the program as lifechanging. Imagine being able to save, invest in your future, or even retire one day without the drag of debt. Debt relief provides a path to reclaiming your financial freedom.
Common Questions about Debt Relief
If you’re considering debt relief, you probably have some questions. Here are answers to some of the most common ones we hear:
How much will debt settlement lower my debts?
On average, settled debts are reduced by 50-60% of the amount owed. However, results vary by creditor. Some settlements are as high as 70%, while others may be 30-40%. The more behind you are on payments, the more incentive creditors have to settle for a lower amount.
How long does debt settlement take?
For most people, becoming debt-free through settlement takes around 2-4 years. However, the timeline depends on several factors:
- Your total debt amount – The higher your debt, the longer it will take to save up enough to make settlement offers.
- Your monthly payments – The more you can afford to save each month, the faster the process.
- Creditors’ willingness to settle – Some creditors make reasonable deals quickly while others take longer.
The good news is the process moves faster as you settle more debts and have fewer left.
Will debt settlement hurt my credit?
Debt settlement will likely damage your credit, at least temporarily. When you stop making payments, your scores will go down. However, debt settlement helps you escape debt much faster than credit counseling or debt management plans.
Once you complete the program and have no debt, you can start rebuilding your credit. Many clients see their scores start to recover within 12-24 months.
Can creditors sue me?
When debts go unpaid, there is a possibility of getting sued. However, creditors rarely sue for debt settlement because they want to avoid the legal fees. We advise clients on the statute of limitations in Florida which limits how long creditors can take legal action.
If a creditor does sue and win a judgement, debt settlement funds are protected as they are held in a dedicated account. We can still negotiate a reduced settlement on the judgement. Going through debt settlement reduces the risk of getting sued compared to making no effort to address debts.
Start Your Journey to Financial Freedom
If debt has become a dark cloud hanging over your life, take the first step and contact Delancey Street Financial today for a free consultation. Our experienced debt relief team will walk you through all of your options. We have helped thousands of Miami residents settle their debts and become free of the burden. You can be next!