If you're living in Washington DC, you're unable to manage your unsecured debts, and pay them off, then you can try Washington DC debt consolidation or settlement. By doing so, you can lower your monthly payments and replace multiple bills with a single monthly installment on your credit cards, medical bills, etc. Read on to learn about Washington DC debt consolidation and settlement.
How does Washington DC debt consolidation help you repay bills?
Contact a Washington DC consolidation company:You can contact consolidation companies in Washington DC to help you consolidate and combine multiple bill payments into one payment every month. When you enroll in a consolidation program offered by a reputable company in Washington DC, a debt consultant will assess your financial situation. This assessment will help the consultant negotiate a low interest payment plan with your creditors. So, if you've thought of filing for bankruptcy, try to consolidate and get rid of your bills first. Learn more about consolidation programs.
Take out a consolidation loan to pay off bills:Instead of getting help from a consolidation program, you can also take out a consolidation loan from a lending institution in Washington DC. However, make sure you take out an amount that will help you pay off your outstanding balances, especially the high interest bills. This way, you can replace most of your bills with a low interest loan that's easy to pay down. Learn the details...You can also consolidate your bills yourself. By doing so, you can save the fees that you would need to pay to a consolidation company to take advantage of their services. Learn more...
How can you avoid mistakes in consolidation and settlement?
Here are some mistakes that people make while paying off bills with help from consolidation/settlement programs:
Choosing the wrong company
Continuing to accumulate debts
Not checking credit statements
Not monitoring credit reports
Apart from above, you should also assess the fees charged by a consolidation or a settlement company. You should report the company to your state's Attorney General if you think such a company is charging fees that are too high.
The Washington DC State Attorney General's contact information is:
Washington DC Office of the Attorney General
441 4th Street, NW, Suite 1145S
Washington, DC 20001
(202) 727-3400 (Main)
(202) 347-8922 (Fax)
What are the other debt relief programs in Washington DC?
You can get help from a Washington DC debt settlement program to pay back what you owe to your creditors. In a settlement program, the company negotiates with your creditors and/or collection agencies to reduce the amount payable.
For example, let's say you have credit card bills worth $50,000 and your creditors agree to reduce the debt amount by about 40%.
So, your outstanding balance = $50,000
Amount forgiven by creditors = 40% of the balance
Using the Debt Settlement Calculator, your outstanding debt will reduce to = $30,000
Therefore, you save = $20,000
Alternatively, you can try a credit counseling session. A credit counselor will assess your financial situation and suggest suitable ways to manage your debts better. If required, they can offer you a debt management plan (DMP) where you can pay off your bills comfortably.
you can save
in Washington, D.C.
FAQ on Washington DC debt consolidation and settlement
However, if the overall balance on your unsecured bills is too high for you to manage, then a Washington DC debt settlement program may be suitable for you. This is because the settlement company can negotiate with your creditors and reduce the principal amount. In your case, you can choose settlement if you're not able to pay off $48,000 in full. However, your credit score will decrease further if you get help of a settlement program.