There Is Hope Beyond Debt Consolidation Services for Colorado Residents
If you’re hoping to buy a home, you may find that your debt to income ratio (DTI) is pushing your interest rate even higher and pricing you out of homeownership – or you simply have too much debt to qualify for a mortgage. For some, homeownership is a dream-come-true, but your debt is so overwhelming that you’ve pushed that dream aside.
However, there is a solution. Bankruptcy and debt settlement can completely transform your finances, so that homeownership becomes a reality. Read our tips to take care of your debt and get in a better position to own a home.
Our Bankruptcy and Debt Settlement Attorneys Have the Answer to Homeownership
People will give you all sorts of advice about how to save money, so you can repay your debts and afford a home. However, most of those people lived in different times or don’t truly understand your situation.
Your debt isn’t simply something you can chip away at quickly. This may have been true for you in the past, but today, your debt has spiraled to the point that it is preventing you from trying money management techniques.
Here are our tips to get out of debt and move closer to your dream of owning a home:
Try an Effective Debt Settlement Strategy
Debt settlement can help you get out of debt for approximately 60% of your debt, including settlements to your creditors (estimated 50%) plus attorney’s fees (which are 10% with The Wink Law Firm). All you need to do is team up with the right debt settlement attorney. We’ll negotiate with your creditors, so they’ll be willing to accept a fraction of the debt you owe. Creditors for unsecured debts, such as medical bills and credit cards, will initially press you to pay. However, after three to four months without paying, your settlement offer begins to look much better than receiving no payments at all.
During this time, The Wink Law Firm will advise that you begin saving for lump sum settlement payments, which are typically the key to unlocking the lowest possible settlements. The Wink Law Firm will help you decide when to accept a settlement, continue saving until you have enough, or the creditors come down to what you have. However, we often advise that the time period in which you save to settle your debt is 24 months (up to 36 months in certain cases). If it takes longer than that, the risks of lawsuits from your creditors may jeopardize your ability to settle all of your debt.
After you’ve paid off your settlements, you’ll be in a better position to save for a down payment on a home. You’ll also significantly reduce your DTI ratio to ensure you’re eligible for a mortgage. Your credit will recover to the point when you’re eligible for a mortgage within one year of settling your debt, and you can use that time to save for your down payment.
Consider the Powerful Benefits of Bankruptcy
Bankruptcy is another excellent solution, if you can’t see the light at the end of the tunnel. Although many people think of bankruptcy as something that only truly desperate people have to experience, this is simply untrue. Bankruptcy has been given a bad name by banks and businesses that lend money, such as debt consolidation services, that would rather keep you in debt and paying interest rates.
For many, buying a home represents the American dream. It’s evidence that you’ve “made it.” Believe it or not, bankruptcy is also a part of the plan that the U.S. Founding Fathers put together to ensure everyone has a chance to move forward financially, no matter their circumstances. While the banks will never admit this, bankruptcy is a useful mechanism for the economy because people who achieve the fresh start bankruptcy provides are able to better contribute. The Wink Law Firm can help you file for bankruptcy and discharge your unsecured debt, like medical bills.
Those who qualify for Chapter 7 bankruptcy can see their credit score improve to 700 and become eligible for an FHA mortgage within two years of filing. If you don’t seek out bankruptcy or debt settlement, you may never get a chance to become eligible for a mortgage. However, The Wink Law Firm’s bankruptcy and debt settlement attorneys can take the seemingly impossible and make it possible for you.
Avoid Debt Consolidation Services
Our final tip is a warning. Debt consolidation won’t put you in a position to get out of debt for less than you owe, and likely will not help you reach your goal of owning a home. Read on to find out how debt consolidation companies hurt more than help when you’re trying to get out of debt and purchase a home.
A Word about Debt Consolidation Services and Why They Won’t Work for Homebuyers
If you have three bags of junk that are ready for the dump, and you decide to consolidate them into one very large bag of junk, do you have less junk now that it’s all in one bag? Nope.
However, this is the logic behind debt consolidation. They hope you’ll believe that they’ve made progress on their debt just because it’s all in one place.
But what if you knew that the dump isn’t going to actually take your junk in that big bag for a single dumping fee? What if you found out that they were slowly – very slowly – taking out a few pieces of junk at a time and charging you each time they remove a little bit from the bag?
This is exactly what debt consolidation services do. Many national debt settlement companies falsely advertise themselves as debt consolidation companies. In reality, they attempt to settle your debt through payment plans, one creditor at a time, while charging you fees over 20% of your total debt. The Wink Law Firm charges 10% of your debt for settlement, which is less than half of what most debt settlement companies charge.
When you want to get rid of the junk – those years and years of debt – it’s important to get rid of it once and for all. This is particularly true if you imagine a future ahead where you own a home. Instead of letting a debt consolidation company mismanage your finances, opt for the help of a bankruptcy or debt settlement attorney at The Wink Law Firm who can put you on a path to homeownership and the financial freedom you deserve.
Don’t Consolidate Your Debt; Get Rid of It and Sign for Your New Home Soon
When you get rid of your debt the right way, you put yourself in an optimal position to experience everything that debt prevented you from experiencing.
Let The Wink Law Firm take care of you with a bankruptcy or debt settlement solution that will bring good things your way. Get your debt discharged or settled with an attorney who wants to see you succeed. That’s why we’re here.
Contact us online or give us a call at (303) 410-1720 to schedule a free consultation.