Are you a New Jersey resident overwhelmed with debts? Has debt consolidation failed to provide you with relief? Then you can try out debt settlement programs in New Jersey to get rid of your debt crisis.
With New Jersey Debt Settlement programs you can get rid of your debts by making a single payment on your debt to each creditor.
New Jersey debt Settlement programs help reduce your debt principal and interest rates to a great extent. If the negotiation process is successful you can reduce your debts up to 40-60% of your original debt.
In New Jersey you can settle your debts in two ways:
A. Settle Your Debts by Yourself
In New Jersey you can settle your debts by your own. Here you need to deal with your creditors alone so you may find the process a bit difficult. If you feel you are capable of handling your creditors alone, you can try to settle your debt by yourself.
When settling your debts you need to ask your creditors to reduce your principle amount and interest rates. You need to convince your creditors that you are not able to make even the minimum monthly payments. If your creditors do not agree to a settlement plan, you can make it clear that you are considering bankruptcy filing. It is likely that the creditor will prefer to agree to a settlement plan rather than risk bankruptcy.
If you want to settle your debts on your own, here are a few guidelines that you need to follow:
B. With the help of a Debt Settlement Company
If you think the process of debt settlement is a bit complicated, get professional help from a debt settlement company. Handling your creditors can be a difficult process if you aren't comfortabledealing with them on your own. If you are facing a similar situation, get professional help from a debt settlement company in your state. Decide on a company after checking out its accreditation with the Better Business Bureau (BBB).
The company takes care of your debt issues and helps you reduce your debts and interest rates. Because the company is aware of the proper legal procedures, it can handle the legal hassles with expertise. The company appoints a debt settlement attorney to work with your creditors to reduce your debt and interest rates. The attorney also notifies the creditors to end all harassing calls and threats.
If you are not able to afford a lump sum settlement amount, your attorney can help you propose a repayment plan. If your creditors approve your repayment plan, you can pay back your debts in easy affordable installments. Thus, it is better that you get professional assistance.
The duration of debt settlement programs depends on various factors. These factors include:
The duration for settling credit card debts is typically 3-9 months for credit card debts and 1-3 years for other debts.
New Jersey debt settlement programs are custom tailored to suit your specific needs. The programs aim at providing the best solution for your financial crisis. Debt Settlement programs can decrease your debts by 40-60% and improve your credit scores in the process.
When you enroll in a debt settlement program, your scores may drop initially. But after you make regular payments on your accounts, your credit scores improve significantly. Once you settle your delinquent accounts there is a noticeable change in your scores. As the debts are paid, the accounts are marked as "paid off"/ "settled".
Any amount forgiven under a debt settlement program is counted as income by the IRS. 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 the forgiven amount.
Last Updated on: 07 Apr 2016