Find the Best Debt Consolidation in Billings, MT

Debt relief programs in Billings

Though the average credit score in Billings is higher than the national average, there are still many borrowers here who can benefit from debt relief services. There are two main types of debt relief available in Billings: debt consolidation and debt settlement.

Debt settlement may be the right option for some, while debt consolidation may be more appropriate for others. Debt settlement is the act of negotiating with creditors to settle your debt for less than what you owe. Debt consolidation allows you to combine debts from several creditors into one single loan with a more manageable interest rate and term.

Billings residents receive debt relief services in person through local companies or online through nationwide debt relief providers. When working with an online-only debt relief company, it’s critical to thoroughly research the company and read its consumer reviews to ensure its legitimacy.

Debt relief requirements in Billings

In order to be eligible for debt settlement, most companies require you have at least $7,500 in unsecured debt. Secured debts, like your mortgage and auto loan, and specific debts, like back taxes, child support or insurance policies, are not eligible for debt relief.

Additionally, most debt relief companies require a minimum credit score of 500 for debt consolidation. Debt settlement doesn’t have a minimum credit score requirement.

Debt relief costs in Billings

The costs of debt settlement and debt consolidation services in Billings vary, depending on the amount of debt people owe. For example, if you owe around $40,000 in unsecured debt, some debt settlement companies charge a service fee of about $6,000 to $8,000— roughly 15% to 20% of your total debt. Others may charge a percentage of the eliminated debt.

Consumers in Billings who choose to consolidate their debt pay interest on the new loan each month. This is why decent credit is so important for debt consolidation. If your new interest rate isn’t lower than your old ones, you probably won’t save money through debt consolidation. People interested in debt consolidation should also ensure they understand the rates, terms and fees associated with their new loan.

Billings debt relief FAQ

Do debt relief companies hurt your credit score?

Yes, but your score can recover. Taking out a debt consolidation loan will temporarily affect your credit score after the hard credit check. Debt settlement shows on your credit report for up to seven years, but the negative impact is not as strong as after a bankruptcy.

What questions should I ask a debt settlement company?

Before working with a debt settlement company, be sure to ask:

1. Will all of my creditors work with your company?
2. What are your fees?
3. Can you tell me how long this will take and how much it will cost?
4. Can I be sued during this process?
5. Are there tax consequences for settling my debt?
6. Are there alternatives to settling my debt?

Can I get a loan after debt settlement?

Consumers with a debt settlement on their credit report are usually unable to qualify for unsecured loans. So, while it is possible to get a loan after a debt settlement, the loan will likely require significant collateral and a higher interest rate.

Is debt consolidation risky?

Debt consolidation is only risky if you’re unable to make your new loan payments consistently. If you struggle with making payments every month, debt settlement may be a better option for you, despite the toll on your credit.

Is debt relief a good idea?

Debt relief can help some consumers get out of debt easier, but its drawbacks sometimes outweigh its advantages. Weigh the pros and cons based on your situation and do your research beforehand to avoid debt relief scams.