If you live in Missoula and are having trouble getting out of debt, debt relief companies can help. Our partners at We researched the best debt consolidation in Missoula, looking for experienced companies with a record of proven debt relief results for customers.
According to the Federal Reserve, the household debt-to-income ratio in Missoula in 2018 was 1.619, meaning the average consumer in Missoula owes significantly more each month than he or she earns. Across the country, the total household debt is close to $14 trillion and has been rising for five consecutive years as of mid-2019.
Debt balance per capita
Source: Federal Reserve Bank of New York
If you are a Missoula resident who’s receiving letters from creditors, having trouble making monthly payments or getting accounts turned over to debt collectors, there are steps you can take to improve your financial situation. These debt relief measures include debt consolidation, debt settlement and alternatives such as credit counseling.
Debt consolidation in Missoula
A debt consolidation loan rolls multiple unsecured debts, such as credit card balances or personal loans, into a single loan. With a debt consolidation loan, you make a manageable monthly payment to a debt consolidation company and don’t have to worry about remembering various creditors, amounts and due dates. These loans frequently also have better interest rates and longer repayment terms.
Not all debtors qualify for a debt consolidation loan in Missoula. You’ll need to have a good enough credit score (generally 630 or higher), be current on your payments and have unsecured debt not in excess of $50,000. You also need consistent cash flow to cover your monthly payments.
Recognize that, if you do get a debt consolidation loan in Missoula, you still owe the full amount of your original debt, and you will be paying off your loan over an extended term. Though your credit score may take a short-term hit, it won’t be negatively affected over the long term — as long as you make your debt consolidation loan payments on time and don’t default.
Debt settlement in Missoula
Debt settlement is the process of negotiating with creditors to lower the total amount of debt you owe. It is most helpful if you have a large amount of unsecured debt, are behind on your balance and can’t make more than minimum payments.
When you hire a debt settlement company in Missoula, the company’s staff contact your creditors and negotiate with them to decrease your debt and pay off the reduced amount with a lump sum. These negotiations usually take two to four years, but, during this time, you make monthly payments to an escrow account. Eventually, this account becomes the lump sum you use to pay off your debt.
Debt settlement in Missoula can help lower many types of unsecured debt, including:
The downside is that debt settlement companies charge 15% - 25% of the negotiated settlement. Keep in mind that debt settlement can also negatively affect your credit for up to seven years, making it difficult for you to get a loan over that period. Although it’s significant, this hit to your credit is not as severe as bankruptcy.
Debt relief alternatives in Missoula
In addition to debt consolidation loans and debt settlement, Missoula residents can use credit counseling to get personalized advice on managing money and debt and putting together a budget. Credit counseling organizations offer free educational resources and workshops from trained professionals.
Credit counseling companies may recommend you join a debt management plan where you deposit money to the company, which then pays creditors according to an agreed-upon payment plan. Creditors may waive fees or lower your interest rates as part of a debt management plan, which can take up to 48 months to complete.
National Debt Relief is a highly rated debt settlement company serving Missoula residents. Get free quotes over the phone or online. This company gets great reviews for its professional customer service. Reviewers in Montana are pleased with having a game plan to get out of debt thanks to NDR’s welcoming and helpful customer reps.
Having settled more than $1 billion in debt, CreditAssociates offers debt settlement in Missoula starting with a free consultation. Credit advisors then work to negotiate debts, taking 24 to 36 months on average to resolve your accounts. Reviewers in Montana are happy with the results and would recommend CreditAssociates to a friend.
Accredited Debt Relief has settled thousands of debt accounts for individuals, families and businesses. Contact the company for a free consultation and savings estimate to learn how you can get out of debt without filing for bankruptcy. Customers say Accredited Debt Relief’s staff have helped them get on a path to resolving their debt.
Freedom Debt Relief has resolved over $10 billion in debt since 2002. This debt settlement company offers customers a free, no-risk consultation with a certified debt consultant. Enrollees can track progress on settlement status 24/7 using a client dashboard. Over 600,000 people have used Freedom Debt Relief, and customers in Montana praise its customer service and successful results.
Consolidated Credit is a credit counseling company that’s been in business for more than 25 years. Its staff of certified debt management professionals also provide HUD-approved housing counseling and special counseling for military service members and veterans. Reviewers in Missoula appreciate Consolidated Credit’s customer service and willingness to answer questions.
FreedomPlus provides customers in Missoula with debt consolidation loans. It offers same-day loan decisions and makes funds available in just three business days. Borrowers with a minimum FICO score of 620 can take out loans up to $40,000 and pay them back with simple, monthly payments. Local reviewers are happy with FreedomPlus and enjoy the lack of hidden fees.