When you're struggling to pay your bills on time and creditors or collection agencies are contacting you to collect on old debts, you should consider choosing an Arkansas debt consolidation or settlement program to get rid of your debts.
Arkansas debt consolidation program - How it works
When you enroll in an Arkansas debt consolidation company, the company negotiates with your creditors so that they're willing to accept your payments at a lower interest rate. This decreases the amount you pay every month to make your payments manageable. Then all you have to do is make your monthly payments to the consolidation company. With a consolidation loan, all of your high interest loans are consolidated into a single monthly payment. Find out more...Benefits of Arkansas consolidation
When you consolidate your bills in an Arkansas debt consolidation program, you get the following benefits:
- The interest rates on your bills will be lowered.
- Your multiple bills are replaced with one manageable monthly payment.
- Late payment fees can be partly or completely erased.
- You don't need to deal with creditors directly.
Get further details on the 8 benefits of consolidation.
Arkansas debt settlement - What it is all about
Arkansas settlement is all about getting rid of your bills by paying much less than what you owe. There are settlement companies that offer programs where they'll work with your creditors or collection agencies to reduce your outstanding principal balance.Benefits of Arkansas debt settlement
You'll get the following advantages in an Arkansas debt settlement program.
- The amount you owe on your bills will be reduced.
- Penalty fees can be minimized or erased completely.
- Lawsuits, judgments, and garnishment can be avoided.
Avg credit card debt: $4,968
Delinquency rate on (credit card): 1.99%
Mortgage debt: $119,707
Delinquency rate on (Mortgage): 2.26%
Auto loan debt: $21,275
Delinquency rate on (Auto loan): 1.54%
Unsecured personal loan debt: $13,254
Delinquency rate on
(Unsecured personal loan): 2.55%
How to decide between consolidation and settlement
To decide whether to consolidate or settle credit card debts, medical bills, etc., you need to find out if you're able to make the minimum monthly payments. If not, then you should settle your bills instead of consolidating them. However, if you think you'll be able to make monthly payments after your interest rates have been reduced, you should consolidate your debts in an Arkansas consolidation program.
How much
you can save
in Arkansas
What type of debts can you settle in Arkansas?
You can settle only unsecured debts in Arkansas. This includes credit card bills, medical bills, utility bills, and payday loans.
What should you do for settling unsecured debts?
There are a couple of things you can do for settling credit card bills and payday loans in Arkansas. Let us know about them in details.
Payday loans
- Check out the payday loan laws in your state to know why these short-term loans have been banned in the state.
- Create a budget and free up funds to settle your payday loan debts
- Visit your bank, fill out the forms, talk to the relationship manager, and revoke the ACH authorization.
- Send letters to the lenders and inform that you’re revoking the ACH authorization since the loans are illegal in Arkansas.
- Stop making payments on your payday loan debts. Inform lenders that you’re willing to settle the principal amount though.
- If you can’t deal with the lender, then call the Toll-Free number of a good debt settlement company and get help from them. They are an expert at negotiations.
- The settlement company will open a dedicated account in an FDIC insured bank. Save money in that account so that they can start negotiating with your lenders as soon as possible.
An important payday loan debt settlement tip
If you have paid more than the principal amount, then ask the payday loan company to refund the extra amount. Ask them to send you a refund check to your address. If you have closed your current checking account and opened a new one, then don’t disclose the details to the company.
Lenders can threaten to file a lawsuit against you. Don’t get nervous. Since payday loans are banned in the state, so they can’t garnish your wage or levy your bank account.
The payday loan companies know the state laws better than you. Still, they claim that state laws don’t apply to them. Don’t believe them. These companies are functioning in Arkansas illegally and they know that fact too well. They want your money and they can go to any extent to make you send payments.
Credit card bills
- Check out the statute of limitations period in your state. The statute of limitations period for written contracts in Arkansas is 5 years. If 5 years have passed since the day of your last default on your credit cards, then creditors can’t file a lawsuit against you. The debt will be there on your credit report but creditors can’t garnish your wages for it.
- Check your credit report and find out the status of the account. Has it been charged-off? Has it been assigned to a collection agency?
- Calculate how much you owe on your credit card bills.
- Calculate how much you can save with debt settlement.
Apart from payday loans and credit card bills, you can settle medical bills too, The only advantage of settling medical bills is that they will be removed from your credit report as soon as they are paid off.