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Debt Settlement in Alaska

If you are a resident of Alaska struggling with your credit card debt issues, then perhaps it is time for you to consider debt settlement in Alaska.

Alaska debt settlement aims to resolve all your problems with lump sum debts. By settling your huge debts with your creditors, you can not only reduce your debt principal, but also the interest rate. The process helps you save money once the settlement process is complete and helps you get rid of your debts sooner.

By choosing debt settlement in Alaska you can not only sort out your problems with enormous debts, but also bring your finances under control. The settlement process also helps you to get rid of all kinds of creditor harassment and abuse.

With debt settlement, you can also expect improvements credit card interest rates as you settle with your debts. It is also a great option to keep you out of bankruptcy. If you are careful about choosing your debt settlement program, you can easily get rid of your debts and look forward to a debt free life in no time.

What bills can be settled?

  • Credit card expenses
  • Phone bills
  • Medical bills
  • All unsecured debt without collateral
  • Personal bills

How does the Debt Settlement process work in Alaska?

Alaska debt settlement is highly effective in reducing lump sum debt along with the high interest rates that accompany it.

The debt settlement process lowers your debt principal amount to 40-60% of your original debt. A well planned debt settlement allows you to get out of debts faster by saving money at the end of the process. As you continue making payments to your creditors your credit scores will improve.

In Alaska the debt settlement process can be done in one of two ways:

  1. Settling debts personally: In Alaska settling your debts on your own helps you save some money that might otherwise have gone to a settlement company. However, some creditors are reluctant to settle for less than the total amount they're owed. There are some basic guidelines you should to follow if you want to settle your debts on your own. They are:
    • Learn about your state's credit card and consumer protection laws in order to protect yourself from any scams.
    • Let your creditor know that you are interested in settling your account and you are seeking his approval to moving forward with the settlement process.
    • Elaborate on your weak financial situation and the unavailability of any other options.
    • While carrying out the settlement process always offer a large lump sum settlement. The creditors then feel that they are recovering most of their money and will be more willing to accept your debt settlement offer.
    • You can also try proposing a repayment plan if you think your position is not good enough to offer a lump sum settlement amount.
    • Keep track of all your accounts and make sure your creditor is properly reporting to account as "settled" or "paid" to the credit bureau.
    • Convince your creditors that if they do not agree on a debt settlement plan, your last resort will be to file for bankruptcy.
  2. Debt Settlement with a Debt Settlement company in Alaska: Setting your debts with a debt settlement company is a better option that trying to settle them as you can avoid any legal hazards that may arise. Select a debt settlement company after finding out whether it is accreditedwith the Better Business Bureau (BBB). This affiliation assures you the company is credible, and helps you avoid scams.
    The company first analyzes your financial situation and finds you a debt relief program that will cater to your needs. Any creditor issues will be specifically handled by a debt settlement attorney appointed by the companyto work on your behalf. The attorney negotiates with your creditors to reduce both the principal and interest on the debt by 40-60%. This percentage is difficult to attain if you try settling by yourself.
    If you are unable to offer a lump sum settlement amount, the debt settlement lawyer can also negotiate a repayment plan. The plan will help you pay with affordable installments over a long time.
    Debt settlement is not an easy task. Creditors are always ready to harass you with notices, calls, and abuse. Your attorney will instruct your creditors to contact the firm and not you. Creditors are legally prohibited from any kind of contact with you once they know you"re represented. Therefore, you are always kept at a safe distance from any creditor threats.

Average Duration of a Debt Settlement in Alaska

In Alaska, the duration of a debt settlement program depends on various factors, like the kind of debt, the outstanding debt amount, and the number of debts you intend to settle.

The duration for debt settlement programs in Alaska generally ranges from 6-9 months for credit card debt settlement and 1-3 years for other debts. You just have to be careful that there are no defaults on your account after you have enrolled in the program.

How does Alaska Debt Settlement affect your Credit Score?

Alaska debt settlement programs offer customized solutions to their consumers to help them improve their credit score.

At the start your credit scores may decrease as your inability to pay back your debts it is the primary factor used to calculate your credit score.

But your credit scores can be improved with time. After you enroll in a debt settlement program and pay back the settled amount to your creditors on a regular basis, your score will increase. How much your score increases also depends on the extent your accounts are delinquent. The extent of the improvement to your credit score is greater when a delinquent account has been settled and paid, then when a current account is settled. Your credit scores also increase as your debts are cleared and marked as paid/settled by the credit bureaus.

After most of your debts are cleared, your credit score will improve considerably. If you get your settlements done with the help of a debt settlement attorney then you also expect to be offered better repayment plans. The process also helps you save money, especially at the end of the settlement program, which means it is far better than filing bankruptcy.

Benefits of Alaska Debt Settlement

  • Monthly payments are reduced.
  • Only the minimum qualifying amount is paid.
  • Can save money after the completion of the settlement process.
  • Harassing collection calls from creditors are stopped.
  • Improvements can be expected in the credit card score.
  • Bankruptcy can be safely avoided.

Tax Consequences

The IRS deems any amount forgiven under a debt settlement program as income. You need to report it on your income taxes for the year the debt was forgiven.

If you qualify as insolvent on the day before your debt was forgiven, you do not have to pay taxes on your forgiven amount.

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