How to Settle Your Debts in Oregon

Collect the Details About Your Debts 

Documents to have handy when preparing for your credit counseling session and for a possible debt settlement process include:

• Copies of your most recent bills 

• The last two months of your pay stubs 

• A credit report 

• Any records indicating the reason you fell behind on your bills (ie. medical, loss of income, layoff etc.) 

You will likely need to prove to your creditor that you need to settle your debts because you can’t afford to pay them in full. In doing so, you will need to paint a complete picture of your finances. You can pull a free credit report online from the credit bureaus to make sure you have the most up to date information available. If you have been delinquent for a long time, it is likely your debt has been sold to another company. Go through the report carefully and make certain you know who to contact with respect to your accounts. 

Collect Details About Your Ability to Settle Your Debts

While debt settlement can help a lot of people quickly pay down their debt, it can also be extremely harmful when approached in an uninformed way. Many people sign up for debt settlement programs who aren’t prepared to complete this process successfully. As your accounts continue to become delinquent, fees, penalties, and interest accrues. This means you will receive more collection calls from creditors and collection agencies. Once your accounts become past due, there is no turning back and you will be responsible for the amount due if your creditors don’t agree to settle. This process can also have a major impact on your credit score.

The following factors may suggest that you should contemplate an alternative debt relief option before signing up with a Oregon debt settlement company:

• You can't make lump-sum payments. 

• You don’t have access to money that you can save over a few short months to settle your debts.

• A short-term improvement in your credit score is important to you. 

• Most of your debt is secured debt (ie. taxes, mortgage, student loan, car loan).

Going over your income and expenses is a vital step to making sure a debt settlement program will work for you. You will want to figure out what you can and can’t afford so that you can offer realistic settlements. You should make a monthly budget for yourself so that you know exactly what you have available to settle your debts after accounting for your expenses. 

Learn About the Costs to Settle Your Debts in Oregon 

If you decide to hire an Oregon debt settlement company to help you settle your debts, there are fees that you will need to pay. These fees include late fees on your account and fees charged by your debt settlement company. Always inquire about how an Oregon debt settlement company’s fees are set up and when you will be charged. A company can charge you only a portion of it’s full fee for each debt it settles. If the company's fees are based on a percentage of the amount you save, it must tell you the percentage they are settling for and how much you will be charged.  

Decide Whether to Work With a Oregon Debt Settlement Company

Working with an Oregon debt debt settlement company can have some great benefits if you are unorganized and don’t have the time to settle your debts on your own. An Oregon debt settlement company can relieve stress as they handle your debts. However, not working with a debt settlement company can also have benefits, including saving money on fees you’d otherwise have to pay to a debt settlement company. If you want to settle your debts on your own to stay in control of your finances, you can do that as well. However, you should only consider settling your debts on your own if you are:

• Highly organized 

• Free to make multiple calls to debt collectors

• Able to convey things clearly. 

• Don’t want to pay the fees associated with the settlement company. 

Research Oregon Debt Settlement Companies

Before you sign up with an Oregon debt settlement company, the enterprise must give you specific information about their program. They must explain their price and terms and the conditions of their services. They must also tell you how long it will take for you to reach settlements with your creditors and how much money you will save before any settlement is accepted. 

Watch out for these red flags that suggest the company is running a scam: 

• The debt settlement projects excitement about “new government programs” (there usually are none).

• The debt settlement program makes guarantees - no one can guarantee a creditor will settle for a certain amount let alone, settle at all. 

• The debt settlement company tells you to stop making your minimum payments.

Making sure that the Oregon debt settlement company you hire is reputable is vital. You can visit the attorney general’s website, and more specifically check out the consumer protection division to see if any complaints have been filed against any company you may want to work with. The Better Business Bureau will also allow you to research whether former clients were satisfied with their services. You can find a company’s BBB rating and see how they were scored by visiting the organization’s website. 

How to Make Your Debt Settlement Work

Making sure you have a good system in place to ensure the success of your debt settlement program is essential. Keep to your budget. Emergencies and unexpected bills pop up all the time, so make sure you leave yourself room to pay for these unexpected emergencies. Don’t open up new credit cards while you are settling your debts. You want to make sure that you stick to your budget to ensure that you have funds to pay your settlements. If you miss a settlement payment, your full balance may become due so make sure to stay on top of your finances. If you see yourself beginning to fall behind, call your creditors immediately and see if they are willing to help you remain on track. 

Alternatives to Debt Settlement

Many people don’t have extra funds available to make settlement offers to their creditors. If you are living paycheck to paycheck, debt settlement may not be the best option for you. However, there are alternative debt relief options available that may be worth exploring.