Debt Settlement: Negotiate settlements for less than the full balance.
You have several options for dealing with debt. Debt settlement is the quickest and most effective
way to become debt free and regain financial freedom once again. The services of a
debt settlement
attorney can help guide you along this path.
With the excessive interest rates being charged by most financial institutions, you will be paying
your existing creditors for many years to come. In certain situations and if handled correctly, most
creditors will agree to accept less than full balance to settle outstanding debts.
Debt Help Lawyers
may be able to negotiate down your high unsecured debt balances and get your debt settled for less
than the full balance. And unlike non-attorney debt settlement companies, Debt Help Lawyers can stop
harassing debt collectors and enforce your Fair Debt Rights.
Avoid bankruptcy, and the stress and aggravation of debt.
Contact a Debt Help Lawyer today, affordable
rates and peace of mind.
Other Options for Dealing with Debt
1. Bankruptcy.
Consumers owing a large amount of credit card debt may see bankruptcy as their only debt relief alternative.
And though bankruptcy may appear to be the easiest solution to eliminating outstanding debt, it also carries
with it the most severe ramifications: it can appear on your credit report for up to 10 years, and is a matter
of public record for anyone that wants to know. In addition, recent changes in bankruptcy laws have made it
more difficult to eliminate debts through bankruptcy. And unless you get a complete discharge under chapter 7,
bankruptcy requires a court-appointed trustee to control and oversee your estate, dictating how you pay back your creditors.
bankruptcy can be avoided, and your debt problems may be solvable in significantly less than the time a bankruptcy
would stay on their record. Thus though bankruptcy rightfully remains the final tool of financial wellness, it is
truly an option best exercised with caution, and as a last resort for debt relief.
2. Consumer Credit Counseling Service.
"Credit counseling" companies are generally set up and funded by the credit card companies. These companies
do not settle debt, but rather make payments to your existing creditors through funds which you furnish them.
In order to complete these programs, your creditors need to be paid in full -- no accounts are settled and no
savings are realized. Given credit counseling companies are compensated by the creditors, you have to wonder
whose interests they have at heart.
Still, credit counseling companies can lower the interest being charged and can save you some interest money
on your high interest credit cards. You make one monthly payment to the consumer credit counseling agency,
then they disburse your funds and pay each of your creditors for you. It is important to understand, though,
that you will pay the full balance owed on your various accounts with interest. In other words, your creditors
will not be forgiving any of the remaining balance that you still owe. Further, when working with one of these
companies, any debt that they help you with will show as TPA (third party assistance) on your credit report.
3. Debt Consolidation Loan.
Debt consolidation does not eliminate debt, but instead is simply a way of borrowing additional funds to pay
off your existing creditors. Consolidation assumes you have the ability to secure a loan through a financial
institution. Its aim is to get you a lower interest rate, secure a fixed interest rate or for the convenience
of simply making one payment instead of many. Unfortunately, consolidation usually takes a much longer period
of time to satisfy your debts.
A consolidation program can also severely affect the ability to discharge debts in bankruptcy. And though a
consolidation loan might have a lower interest rate than the rates you are currently being charged by your
current creditors, very often debt consolidation loans are secured with property and you ultimately could find
yourself facing the possibility of losing your home. Consolidation is in no manner similar to debt settlement!
4. Do Nothing.
Do nothing, is exactly as it sounds. For most people this is not a practical solution, but technically it
is an option. Unfortunately even if you are doing nothing, your creditors will definitely not do the same.
This course of action may result in lawsuits, repossession, and a lot of stress. Ignoring your debts will
never make them disappear, but it will most likely cause you more grief in the short and long run.
An example where doing nothing might work for you would be if you were unemployed and had no assets a creditor
could pursue. Essentially you would be "judgment proof" and your creditors would (at least temporarily) hit a
roadblock. However, this does not mean that they can’t come after you at a later date...when you least expect it.
 
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