Tips and Advice for Debt Settlement and How Second Chance Checking in Las Vegas Can Help
Debt happens to many people. Life has its moments, bills keep coming, and before you know it, you're drowning in bills and invoices far above anything you could ever keep up with.
If you've found yourself facing creditors, it is best to explore a few options. It may also be helpful to consider second chance checking in Las Vegas to help get you back on track.
Bankruptcy may be the first thing that comes to mind when you just want to be out from under the dark cloud of debt. However, bankruptcy is often not the best choice as it can prevent you from obtaining loans, apartments, and other forms of credit for several years. Look to other options before you consider this route.
Debt settlement is another option you might want to consider. It involves the process of negotiating with your creditors to minimize the amount you owe. For example, you may owe $25,000 on a credit card. After working with that credit card company, they may agree to settle your debt at $10,000, meaning you're forgiven the $15,000 difference.
The major benefit of debt settlement is, once the transaction is complete, you'll have a clean slate. This means you can immediately work on rebuilding your credit rating, and you'll no longer have to worry about creditors calling to harass you about outstanding debts.
On the other hand, creditors often won't settle a debt until you're significantly behind on your payments. This means your credit has likely already taken a hit by the time settlement becomes an option. Debt settlement often includes the following elements, too:
- Taxes - You'll be required to pay taxes on the amount of money you were forgiven. Using the above example, you would be paying taxes on the $15,000 negotiated off your total.
- Lump Sum Payments - Often, you'll be expected to pay the entire amount you owe in one payment.
Avoid Debt Settlement Agencies
Third-party agencies will negotiate with credit card companies on your behalf, but that's something you could be doing on your own. Bear in mind when you use a third party, you'll need to pay them for their services, which will ultimately cut into the benefit of reduced debts.
Second Chance Checking in Las Vegas
If your finances have suffered, and you're no longer able to open a traditional account, a second chance checking account can offer you a great opportunity to rebuild your financial situation. This option helps avoid costly fees associated with pre-paid accounts and helps establish credibility with an FDIC-insured organization.
At Clark County Credit Union, CheckAgain, our second chance checking account in Las Vegas, allows you to receive full account access online, over the phone, or at branches. This account is just $12 a month, and after twelve months of approved activity, you'll be eligible to upgrade to a monthly-fee-free account when you meet the qualifications of one of the other checking accounts.
Are you in the process of rebuilding your financial reputation? A CheckAgain - Second Chance Checking account in Las Vegas may be just what you need to get on your feet again!
Call Clark County Credit Union at (702) 228-2228 to learn more!