Find the Best Debt Consolidation in Richmond, VA

Options for debt relief in Richmond

Many people in Richmond find themselves in need of debt relief because of the high cost of living in certain areas. Although the average home price is lower than the national average, neighborhoods like Wilton and Windsor Farms are particularly expensive.

There are a few options available when searching for help with debt. While searching for a company, it’s essential to consider what type of debt relief the company offers. Debt relief companies typically require you to have a minimum of several thousand dollars of unsecured debt.

The minimum requirements may be different for the various debt relief options, however. For instance, filing bankruptcy can discharge specific types of secured debt but may require you to owe more than debt consolidation.

Debt consolidation typically requires you to take out a loan to pay off your existing debt. This loan usually has a lower annual percentage rate than your current debt, and debt consolidation lets you make one monthly payment instead of paying multiple creditors.

Under debt settlement, you stop paying your creditors and put money into an account created specifically for debt settlement purposes. The debt settlement company uses those funds to negotiate with your creditors in an attempt to settle your debt for less than you owe.

Bankruptcy options in Richmond

Many people with debt are tempted to file bankruptcy, but you should consider the damage bankruptcy could do to your credit history.

Individuals who want a quick resolution to their financial woes and don’t have many assets may want to consider bankruptcy, but those who can afford monthly payments and don’t have excessive debt typically benefit more from other types of debt relief.

What to consider when choosing a debt relief company in Richmond

Before choosing a debt relief company, make sure you’re aware of how the company provides its services. Some debt relief companies only have online services, but others may have a local branch where you can speak to a debt specialist in person.

Some debt relief companies also have credit score requirements, especially for debt consolidation loans. Be sure to ask any company you’re considering working with about its requirements before committing to using its services.

Debt relief cost in Richmond

The cost of debt relief varies significantly depending on the type of debt relief you choose and the complexity of your debt. In Richmond, residents seeking debt settlement should expect to pay the company a service fee of about 15% of your total debt, though some companies charge a percent of the money they save you through negotiation.

For debt consolidation loans, you make monthly payments with interest to pay off the loan. Some companies offer debt management plans instead of loans — these companies charge a fee that’s typically around $25 to $50 per month.

Richmond Debt Relief FAQ

Do debt relief companies hurt your credit score?

Debt relief may hurt your credit score, depending on the program you choose, but your score can recover. If you choose debt settlement, you’ll see a reduction in your score because you stop paying creditors.

Bankruptcy typically has a serious, long-term effect on your credit history. A reputable debt relief company will help you understand how its service will affect your credit score.

What questions should I ask a debt settlement company?

Before working with a company, find out what services it provides. Ask how it handles cases and whether it assigns a case manager to each customer. Be sure to ask about the company’s fees so you clearly understand how much you’ll pay for services.

Can I get a loan after debt settlement?

After you settle your debt, you may be able to obtain a loan. Consider working with your debt relief company to find ways to increase your credit score, which makes it more likely you’ll be approved and typically helps you receive a lower APR.

Most companies discourage customers from taking on additional debt while participating in a debt relief program.

Is debt relief a good idea?

Although debt relief isn’t right for everyone, it’s a smart option for many people. To find out if it’s a viable option for you, speak with an experienced debt relief professional.