At some point and time you may be in debt. You might have tried debt counseling, consolidating your debt into your home loan, and maybe even considered bankruptcy.
If your in debt and have consider all other the other options it may be time for you to look at getting some real professional help. In this article I’m going to talk about how a debt settlement attorney can help you get out of debt.
What A Debt Settlement Attorney Can Do
An attorney based debt settlement business works in much the same most debt counseling firms do except they are much more aggressive. The reason this can be more beneficial to you is that they will work to negotiate on your behalf to cut done interest and principle payments.
For example if you want to consider negotiating a debt settlement you can, however they also deal with bankruptcies, and can even look through your credit reports to help you clear up mistakes on your credit history.
On top of that they can negotiate your interest rates with creditors, help you do a debt refinance to cut down high interest rates and help improve credit, negotiate late fees, and even negotiate your monthly payments. In most cases these companies can get you out of debt in half the time.
Why You Should Consider This Option
First off, a debt settlement attorney network will have the knowledge to talk to your creditors that you just may not have. They also know that creditors a lot times are willing to cut down at a minimum the interest on a debt to at least get something back in return.
Second, an attorney of debt settlement can get you out of debt in half the time. Cutting out penalties and extra fees can go a long way to getting you out of debt faster. On top of that they can also work with creditors to eliminate a portion of your principle payments as well.
Why You Shouldn’t Consider This Option
When I wrote this article I thought it would only be right if I would give a few reasons why I don’t like this option. First, one of the huge down sides to this is that it could mess up your credit score.
When debt is paid to your creditor it is reported to the credit bureaus in a certain way. First it can be reported as paid in full, which is the best option, or it can be paid as agreed or pay for delete. The problem with the last two options is that hurt your credit severally if it ends up on your report.
How Do Debt Settlement Attorneys Cost
According to the Oak View Law Group fees can range a lot of different ways. For example if you would like them to negotiate your interest rates and principle payments with creditors you can expect to pay around $100 a creditor plus a $50 monthly fee to handle transactions.
However, as with most debt companies the more debt you put into the program the higher the fee can be. For example with the Oak View Law Group if you have over $10,000 your fee will jump from $100 to 5% of the total amount of debt you have. So if you would have $30,000 of credit card debt it would cost you $$1500.
Is A Debt Settlement Attorney For You
The first thing you need to know if a debt settlement attorney is for is what kind of debt your have. In most cases they will only work with unsecured debt like medical bills, department store cards, and credit cards. Secured debt like you mortgage or car loan will not be accepted into a debt settlement program.
You also need to consider your current financial situation. If your facing a hardship right now like a medical injury or loss of a job you will be more pron to be excepted. However if you are not facing a hardship and are able to make payments you may be able to get out of debt yourself. If you would like to learn more about this check out my debt plans section.
On a final note be carefully with who you hire to help you get out of debt. Some companies are only out to rip you off so they should be accredited with the Better Business Bureau.
Chris
