When you're stressed out with credit card debts, medical bills, and payday loans and you're looking for relief in South Dakota, it may be time to explore South Dakota debt consolidation or settlement programs.
South Dakota debt consolidation - What it is all about
South Dakota consolidation is all about merging several bills into one monthly payment that's easier to manage. It works in 2 ways, as explained here.
Enroll in a consolidation program:You enroll with a South Dakota consolidation company and let a consultant work on your budget by calculating your total income and expenditure. He'll figure out how much you owe and help you prepare a budget so that you can afford to pay a certain amount towards your bills each month.
Consolidation companies work with your creditors and collection agencies to lower interest rates and eliminate late fees/penalty charges which are tacked to your outstanding principal balance. So, you can have your monthly payments reduced and avoid the stress of tracking several bill payments and dealing with several creditors at a time. Learn more...
Take out a consolidation loan:If you find the monthly payment on your consolidation program isn't affordable, you can take out a South Dakota debt consolidation loan. With this unsecured loan, you can repay your outstanding balance on credit cards, medical bills, and payday loans with one large payment.
However, you'll have to repay the consolidation loan in small monthly installments over a long time period. Due to the long duration of the consolidation loan, you'll end up paying more interest over the life of the loan, in comparison to what you pay with a consolidation program or a payment plan.
What to do if you can't consolidate your bills
If you have lost your job or experienced medical difficulties and you're running out of money, you may not be able to make monthly payments at all. In this kind of situation, you won't be able to afford the payments under a South Dakota debt consolidation program. This is when you should try settling your bills by negotiating with your creditors to pay less than the current outstanding balance on each of your accounts. If you'd like to settle debts on your own, call your creditors and negotiate to have your balance reduced.
Avg credit card debt: $4,724
Delinquency rate on (credit card): 1.06%
Mortgage debt: $145,047
Delinquency rate on (Mortgage): 1.21%
Auto loan debt: $17,690
Delinquency rate on (Auto loan): 0.91%
Unsecured personal loan debt: $15,911
Delinquency rate on
(Unsecured personal loan): 2.39%
South Dakota debt settlement program - How it can help you
If you don't feel comfortable settling bills on your own, you should enroll in a settlement program offered by a South Dakota debt settlement company. These companies create a trust account in your name for you to deposit a certain sum of money into your account that will be used to repay your bills. The South Dakota debt settlement company then starts negotiating with creditors, so that they agree to accept the amount you're able to pay. Before you sign an agreement with the settlement company, make sure you verify the fees and check the terms and conditions of the program.
How to find a reputable consolidation company
To choose the right consolidation company in South Dakota, follow the tips below:
- Look for the company's accreditations: Make sure the South Dakota debt consolidation company is accredited by a reputable organization like the Better Business Bureau.
- Check out the company's reviews: Check their online reviews, complaints, and feedback on the company and its services. This will give you an idea whether it is good idea to deal with the company.
- Inquire about their fees: There are South Dakota debt consolidation companies that charge an initial set-up fee or upfront fee along with monthly fees for maintaining your accounts. Inquire about the company's fees before you sign an agreement with the consolidation company.
- Go for a free consultation: Attend a free consultation session with the consolidation company, learn about their programs and how they'll help you pay off your bills. It's essential to know whether they'll work with creditors to reduce interest rates and late fees.
Now, I was informed by Equifax that my Chapter 13 dismissal can remain in credit report for 10 years, whereas my Chapter 13 discharge will be removed after 7 years. I didn't get that. My question is when I had it dismissed voluntarily and refilled and repaid by debts as told, then it should also get removed after 7 years.
Chapter 13 dismissal implies that your creditors can immediately initiate or continue with state court litigation on the applicable state law to foreclose your (petitioner's) assets like a home or garnish your income.
As soon as a bankruptcy case has been dismissed, it'd stand as void and won't have any legal effect as a result.
On the other hand, a Chapter 13 discharge implies that your case was completed successfully and that you've earned a discharge. Here, a successful discharge means that all your financial obligation enlisted in the Chapter 13 case have been satisfied, and hence, creditors will not be able to pursue debt collection actions against you, per the applicable state law. However, you can file a lawsuit against any creditor whose debt has been discharged under the said BK case for trying to collect the vanquished debt from you. Still, it's better to consult your attorney before taking any remedial measure.
Public record listings of Ch 13 bankruptcy remains for 7 years from the filing date and 10 years for Ch 7 bankruptcy.
Next time, if you ever want to turn your credit accounts back into black, then you may consider opting for a legal debt settlement or consolidation service, or even credit counseling.