If you're trapped by debt in Oregon and all you need is a reduction in interest rates or principal debt amount, you should consider getting help from Oregon debt consolidation or settlement services.
Oregon debt consolidation - How it works
There are 2 ways you can consolidate bills in Oregon:
1. Getting professional help:
With Oregon debt consolidation, you can combine multiple bills into one monthly installment. Throughout this process, you make a single monthly payment to the company which distributes it to your creditors. Take a look at the benefits of consolidation.
2. Do it yourself:
If you don't have a budget, use the Personal budgeting application. Then calculate your outstanding balance using the debt calculators and work out a payment plan you can afford. Once this is done, start negotiating lower interest rates with your creditors and collection agencies. Just check the guidelines for contacting creditors before you negotiate in writing.
Balance transfer may work for you
If you have unpaid credit card bills and you want to combine all of them into one, apply for a low-interest balance transfer card. Or, you may shift the high-interest balances to the lowest-interest card you have. So, you'll make a single monthly payment instead of many. It's simpler and easier to manage.
Prior to going for a balance transfer, check the following:
- Balance transfer fee: Prior to the Credit Card Reform Act, 2009, a balance transfer fee was usually assessed at 3% but most card issuers have increased it to 5% or more. So, you need to check the fee before you transfer card balances.
- Introductory rate & period: If you apply for a 0% introductory rate card for a balance transfer, check how long the introductory rate will last. Since the Credit Card Reform Act has been enforced, introductory rate periods have reduced from 18 months to 6-12 months. So, if it's possible for you to pay your bills completely within 6-12 months, then balance transfer is a good idea.
- Effects on your credit score: Try to find out whether your credit scores will take a hit if you go for a balance transfer. Usually, applying for a new card can hit your credit score in the short term as it shows you're in need of money.
Oregon debt settlement - How it helps you
If lowering the interest rates doesn't make your monthly payments affordable, it's better to negotiate a settlement with your creditors. If you need help negotiating your debts, enroll with an Oregon debt settlement company. They offer settlement programs where they communicate with your creditors to cut your debt amount. Here's an example of how settlement works:
Suppose you have 3 credit cards, 2 payday loans, and a medical bill and you'd like to settle your bills. The outstanding balances are:
Credit cards = $70,000
Payday loan balance = $20,000
Medical bill = $20,000
So, the total amount you owe = $110,000
If you're able to include all your accounts in an Oregon debt settlement program, your outstanding balance is likely to reduce to = 60% of $110,000 = $66,000
So, you'll save around = $44,000.
Settlement helps you to get rid of bills fast, but you need to understand the pros and cons before trying it. Check the pros and cons of settlement.