How bad are Chicago’s debt and financial problems? Are there debt relief programs in Chicago to give consumers a fresh start, or are they all a scam? The following page will give you the specifics that you need to understand Chicago’s current financial situation and what the best debt relief options are in 2018.
- “Chicago residents are now more likely to miss a credit card payment than residents of any other major city, including New York, Los Angeles, Dallas or Miami”, according to the S&P/Experian Consumer Credit Default Indices.
- Chicago residents have the highest default rate in the nation on credit cards, home loans, and car loans.
- “Chicago owes $31.5 billion to pensioners, up from $5 billion in 2000. Chicago has less money set aside in its pension funds today than it did a decade and a half ago”, according to Investors.com.
- Here at Golden Financial Services, a record number of Chicago residents have been approved for debt relief in 2018.
- The Statute of Limitations (how long a debt collection company has to sue an individual over a debt) in Chicago on written contract accounts, like credit card debt, is 10-years. Debt sticks to consumers in Illinois longer than in another state, adding to Chicago’s financial problems.
Why does Chicago have such a big problem with credit card debt? The reason that Chicago residents are struggling to pay their credit card debt, is not because they did anything wrong, it’s because of financial hardship and high-interest balances.
Plus, the average credit score in Chicago is 648, compared to the national average of 699. Consumers in Chicago have lower credit scores on average, compared to the rest of the nation.
A low credit score will lead to creditors issuing loans and credit cards with subprime rates. Subprime is another word for “second chance”. Credit card companies feel that if they issue a loan to someone who has under a 710 credit score, that they’re giving that person a second chance and because of that they can charge outrageous interest rates.
The City of Chicago is filled with subprime borrowers who are being overcharged in interest and who can only afford to pay minimum monthly payments or less. When paying only minimum monthly payments on high-interest accounts, balances may never get paid off, but that’s what the banks want because that’s how they maximize profit.
Top that off, with the fact that the Federal Reserve just raised credit card interest rates in 2018 not once but three times and more rate-hikes are predicted to come over the next year, according to the CME FedWatch Tool – and we’ve got a serious financial mess to deal with in the City of Chicago.
These are the reasons why the City of Chicago is drowning in credit card debt right now.
What can Chicago debt relief programs do for you?
Chicago debt reduction services can rescue you from high credit card balances and unsecured debt. You can be granted one low monthly payment and become debt free in 18-42 months.
Paul J Paquin, the CEO at Golden Financial Services said the following; “Chicago debt relief, settlement and consolidation programs give you control and the power to make a choice based on what suits you best. You can pick from multiple plans and get an affordable payment, and you can even switch to another plan over time if your income changes, depending on what’s feasible for you. You’re not stuck in one plan. Some Chicago residents start out on a three-year program, but then end up getting out of debt in 18-months because they decided to speed up their program after their financial situation improved. This type of flexibility is allowed with debt relief programs – you truly take back that lost control and the power is shifted back to you.”
Chicago Debt Relief, Settlement, and Consolidation Programs can resolve just about any type of unsecured debt, including credit cards, third-party debt collection accounts, medical bills, bank loans and student loans.
There are different programs – designed to deal with different circumstances. Today we will take a look at a few examples of the various types of programs and actual client results obtained.
Here are 3 examples of how debt relief programs in Chicago can help resolve credit card debt:
$20,000 of credit card debt with an average interest rate of 30%
- a monthly payment of $301.50, could resolve your debt in 36 months
$25,000 of credit card debt with an average interest rate of 30%
- a monthly payment of $357.06, could resolve your debt in 36 months
$30,000 of credit card debt with an average interest rate of 30%
- a monthly payment of $412.61, could resolve your debt in 36 months (click here to try debt calculator and get more quotes)
Chicago, Illinois – Debt Settlement
Golden Financial Services doesn’t recommend or currently offer debt settlement for consumers in Chicago, there are much more effective options available that even include credit repair. However, in some cases, a debt will need to be settled. For example, this debt was settled for $1,475.65, saving the consumer $2,740.39.
Debt settlement programs in Chicago come with negative consequences and a person should try to avoid this type of debt relief option if possible. Credit scores will go down, creditors can sue a person while on a debt settlement program, and when a debt is settled for less than the full balance owed there are potential tax consequences.
The preferred debt relief programs in Chicago are either debt validation, consumer credit counseling with a licensed company or debt consolidation.
Chicago, Illinois – Debt Validation Client Example
With debt validation, a consumer has the legal right to challenge a third-party debt collection account, where the debt collection company must now provide verification and proof that the debt is valid and legally collectible. If the debt collection company can’t provide all of the necessary documentation and accurate information that federal laws require them to maintain – then you don’t have to pay it. On top of that, if a debt is invalidated the debt collection company cannot report it to the credit bureaus. Click here to learn more about debt validation in the state of Illinois. Chicago debt validation may be the least expensive route to deal with your debt and credit issues.
Student Loan Debt Consolidation in Chicago, Illinois
Student loan debt consolidation is a public option. Visit this page next to learn more about student loan consolidation.
Golden Financial Services – A Chicago Debt Relief, Consolidation, and Settlement Company
After 15 years in business and maintaining an A+ BBB rating – Golden Financial Services has extremely effective debt relief programs. Chicago residents can feel confident in knowing that Golden Financial Services will provide honest and accurate debt relief information.
Before you retain a bankruptcy attorney in Chicago, apply for debt relief through Golden Financial Services. We will make sure to do everything in our power to save you from having to file for bankruptcy and going down that dark road.
If there is a chance of providing assistance to a consumer with high unsecured debt issues – Golden Financial Services is the Chicago debt relief company to do so!