Washington Debt Settlement: An Empathetic Guide
Debt can feel overwhelming. Many Washingtonians struggle under the weight of credit card bills, medical debts, or student loans. You made mistakes, or hit a rough patch, and now that debt feels like it’s crushing you.But there is hope. You can settle your debts and find financial freedom again. Debt settlement, when done properly, can reduce your debts by 40-60% on average. A dedicated expert can walk with you on this journey to a brighter future.At Delancey Street, our debt settlement team understands. We’re here to help, not judge. Let’s talk about how Washington debt settlement works, and see if it could be the right path for you too.
How Debt Settlements Work in Washington
Debt settlement is an agreement between you (the debtor) and your creditors to settle your debts for less than the full amount owed. This can happen in or out of court.Here is the basic process:
-- You stop paying your creditors and put money aside in a secure account instead. This shows creditors you cannot afford your debts and motivates them to settle.
- A debt settlement company like Delancey Street negotiates with your creditors on your behalf to reduce your total debts.
- Creditors agree to settle for a percentage of what you owe (usually 40-60% less).
- You pay the negotiated settlement amount as a lump sum.
- The creditor considers your debt resolved and stops collections activities.
It usually takes 2-4 years to settle all debts. During this time, you save up so you can pay the settlements in full when the deals are made. The key legal principle that makes this work is the “time value of money.” $5,000 today is worth more to a creditor than $5,000 in 3 years, after spending time and money trying to collect. So they are often willing to settle for less if they can get most of the money right away.
Benefits of Debt Settlement in Washington
There are many benefits to settling your debts compared to bankruptcy or debt management plans:
- Save 40-60% on average – Debt settlement has been shown to reduce debts by 40-60%, much more than debt management plans. This translates to thousands in savings.
- Avoid bankruptcy – Bankruptcy damages your credit for 7-10 years. Debt settlement lets you resolve debts without that long-term hit.
- Only one monthly payment – You make one monthly deposit to your secure account to save up for settlements. No more juggling multiple credit payments.
- Stop collections calls – Once enrolled in debt settlement, collections calls stop. No more harassment from creditors.
- Peace of mind – Becoming debt free relieves a huge mental burden and provides peace. No more debt collectors calling!
If you have over $10k in debt and can save up over 2-4 years, debt settlement could help you finally break free.
Risks to Understand
Of course, debt settlement also comes with some risks:
-- Credit score drop – Your score will drop when you stop making payments, and it can take a few years to recover. But your credit is likely already damaged if considering settlement.
- Possible tax implications – If a creditor forgives $600 or more of debt, that money could be taxed as income. Consult a tax pro to understand possible implications.
- Debts could increase – Interest and fees continue growing on unpaid debts. But settlements still often save money in the long run.
- Lawsuits – Creditors may sue if you default on payments. We help you respond properly to protect your rights. Know your risks.
- Scams – Shady debt settlement companies overpromise and underdeliver. Make sure to vet any company thoroughly first.
While debt settlement has risks, for many people the potential 40-60% savings makes it worth considering when weighed carefully against the alternatives.
What Makes a Good Debt Settlement Company?
Choosing the RIGHT debt settlement company is key to having success and avoiding scams. Here are important traits to look for:
- Good BBB rating – Check the Better Business Bureau profile for complaints and transparency.
- Experienced legal team – You need lawyers with debt settlement expertise to get the best deals.
- No upfront fees – Fees should only be based on settlements achieved, not upfront promises.
- Dedicated counselor – A personal advisor should understand your full situation and goals.
- Full service – End-to-end service handles everything from savings accounts to settlement negotiations.
- Ethical practices – No hiding fees or making false promises. Ethical conduct protects you.
- Good reviews – Google, Facebook, and independent review sites should show happy clients.
The right debt settlement company guides you through the full process for the best results.
Delancey Street – Here to Help
Delancey Street meets all the criteria of a trustworthy debt settlement company. Our dedicated advisors walk with you through the full process:
- Opening a secure savings account
- Reviewing your full financial situation with empathy
- Negotiating with each creditor for maximum settlement savings
- Helping you handle creditor communication properly
- Ensuring smooth payment of settlement funds
- Celebrating with you as you become debt free!
Could Debt Settlement Work For You?
If you have over $10,000 in debt, are struggling with minimum payments, and need a long-term solution, debt settlement may be right for you.To determine if it makes sense for your situation, schedule a free consultation with Delancey Street. Our dedicated debt experts will review your financial situation, answer all questions about the process, and provide a customized recommendation. Debt settlement gives you the best chance to resolve what you owe at an affordable cost and walk forward into freedom. And Delancey Street will be there to fight for your financial future every step of the way.The road won’t be easy. But together, we can settle your debts and help you breathe again.
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