Wyoming debt consolidation - How to pay off bills or settle for less
Are you looking to get rid of multiple bills in Wyoming? If yes, then Wyoming debt consolidation can give you some relief. Consolidation is a process of merging all your bills into a single monthly payment. By consolidating your bills, you can lower interest rates and cut down your monthly payments.
Wyoming debt consolidation - Options you must know
There are 2 types of Wyoming consolidation - a consolidation loan and a program.
- Wyoming consolidation loan: A Wyoming consolidation loan merges all your bills into a single loan that you make payments each month. This loan helps to lower your interest rates and monthly payments. These loans come in 2 types - secured and unsecured. Lenders offer a secured loan when you pledge collateral against it. However, unsecured loans don't require any kind of security. Learn more about unsecured consolidation loans.
- Wyoming consolidation program: This program lets you combine your bills into a single monthly payment. In this program, the consolidators at the consolidation company work with your creditors to lower the interest rates on your bills. This program also helps to reduce late fees and finance charges. By sticking to the program, you can repay your bills within a considerable time period. Learn more...
Types of bills you can consolidate under a program
The types of bills that can be consolidated in a Wyoming debt consolidation program are:
- Credit cards
- Utility bills
- Hospital bills
- Store cards
- Personal loans
Benefits of a Wyoming debt consolidation program and loan
The benefits of a Wyoming consolidation program and loan are given below:
- You'll not be required to file bankruptcy.
- You won't have to manage multiple bills.
- You need to make a single monthly payment instead of many.
- You may not get collection calls anymore.
Dangers of a Wyoming consolidation program and loan
The dangers of a Wyoming debt consolidation program and loan are given below:
- You can still get into debt problems: If your debt load becomes bearable after you've paid a certain part of it through consolidation, it might be tempting to start using credit cards again or continuing those habits that got you into your problems. But this can get you into further debt problems.
- You may lose your home: If you've taken a secured loan, and you've pledged your home as collateral for a consolidation loan, then lenders can foreclose on it in the event of a default. However, if you default on an unsecured loan, your credit score may go down but your house will be safe.
- You may end up paying more in the long run: The interest rates on the Wyoming consolidation loans are usually lower than those on credit cards (cc). However, if you've taken out a loan that stretches over a 25 year period, you can end up paying more in interest than you would have spent on each individual loan.
Wyoming debt settlement - An alternative to consolidation
If you're overwhelmed with debt and are considering bankruptcy as a way to tackle it, then you can try a Wyoming debt settlement program. This program helps to lower your payoff amount. There are various companies in Wyoming that offer this program. The settlement company representatives will open a trust account for you. You need to deposit money in this account until you've saved around half the outstanding balances. Once you have saved that amount of money, the company representatives will negotiate with your creditors to settle for less than what you owe.
An example of how settlement can benefit youFor instance, you have a personal loan of $20,000, and cc bills with outstanding balances of $15,000. Hence your total outstanding balance is ($20,000 +$15,000= $35,000)./> If the company representatives are able to convince the creditors to reduce 40% of the outstanding balance, then your outstanding balance will reduce to $21,000. The total amount you save = $14,000. You can figure out the amount you can save with the help of a Debt Settlement Calculator.
Risks to avoid in a Wyoming settlement program
Here are some risks you should avoid when you're paying bills in a Wyoming settlement program:
- Beware of scams: There are several companies that take money from consumers without providing any services. Therefore, before getting help from a settlement company, it is essential to gather as much information as possible. The FTC has passed new debt settlement laws in 2010 to protect innocent consumers from paying huge upfront fees charged by unscrupulous companies in the business. Learn about the new FTC laws on settlement in detail so that the settlement companies can't scam you.
- Your credit score will go down: Most settlement companies may ask you to stop communicating with the creditors. However, this is not legal in some states. The settlement companies actually need you to save money in a trust account opened by them. As a result, your debt amount increases due to compounding interests and late fees. This brings down your credit score.
FAQ on Wyoming consolidation and settlement
Q) I live in Wyoming and have defaulted on several payday loans. My question is what is the best way to get out of this mess? Are payday loans legal in Wyoming?
Ans: Yes, payday loans are legal in Wyoming. If you are not able to manage several pdls, then you can go for a payday loan consolidation program and reduce your monthly payments. Otherwise, you can take out a Wyoming debt consolidation loan and utilize it to repay your bills. Learn more...
Q) I have to pay off 5 credit card bills and 3 personal loans. I have lost my job recently and can't afford to pay so many bills. My question is how can I get out of this problem?
Ans: Since you don't have a job and you're finding it difficult to manage the bills, you should enroll in a Wyoming debt settlement program. This program will help to lower your payoff amount. However, the settlement companies will charge fees for their services. If you can't afford to pay the fees, then it is better to negotiate with the creditors on your own.
Q) I have not been able to make payments on my credit cards in the last few months. Can my creditor charge off the account?
Ans: If you're lagging behind your payments for more than 6 months, then the creditor can issue a credit charge-off and can sell off your account to the collection agency. The collectors will then attempt to collect the payments from you. They can even file a lawsuit against you. If the collection agency gets a judgment from the court, they can garnish a portion of your wages. To avoid this kind of situation, get enrolled in a consolidation program and combine your cc bills into one monthly payment. This way you can pay the bills faster.