Our quick guide on how to get started living debt-free
A lot of Americans struggle with debt. The average person who lives in the U.S. carries over $90,000 in debt. When you feel overwhelmed and stressed out by enormous debt, it’s easy to feel like you’re in this fight alone.
Thankfully, thousands of Americans have experienced debt relief by hiring an experienced debt settlement attorney. So, what is debt settlement – and can an attorney help?
How does debt settlement work?
Debt settlement is when you negotiate with your creditors to settle your debt for less than you owe. Depending on your situation, you may be able to arrange to pay as little as 10% of your original debt, or you could end up paying 50% or more.
You can negotiate to pay your debt in one lump sum or a monthly payment plan. Ideally, paying off your debt in a lump sum is best because it eliminates your debt and closes the account.
What kind of debts can I settle?
With any debt, you have a legal obligation to pay back the total amount, and your creditors are never required to settle a debt. However, that doesn’t mean some debt collectors aren’t willing to work with you to settle your debts. You just need to keep in mind that some creditors are much harder to work with than others.
Not all types of debt can be settled, either. For instance, debt settlement usually isn’t an option for secured debts, and that’s because the creditor can recover more of your original debt by selling the collateral.
Debt settlement is your best option for unsecured debt like credit cards, medical bills, payday loans, and personal loans. Unsecured creditors are easier to work with because these lenders have no collateral as protection.
What is collateral?
Collateral is an asset that a lender accepts as security for a loan. It can be in real estate, automobiles, cash deposits, and investments accounts.
What is a debt settlement attorney?
A debt settlement attorney can expertly negotiate your large, unsecured debts with creditors to lower the amount you owe. This means you can finally experience relief from the burden of crushing credit card debt or stressful medical bills.
When should I call a debt settlement attorney?
Do you have a large amount of debt without a single way to pay for it? Then you need to seek the advice and services of an experienced debt settlement attorney. They can consolidate your debt, lower your payments, and develop the best strategy to reduce your risk of legal issues and protect your credit score. One such experienced attorney is available at www.kanialaw.com/tulsa-
The most important service the best debt settlement attorney provides is helping you avoid bankruptcy. Going into bankruptcy will negatively affect your credit score and interest rates for many years. It’s much easier to repair your credit after debt settlement.
Can they help me with my debt?
While debt settlement attorneys are experts in their field, they can’t guarantee your debts will be lowered. However, hiring a debt settlement attorney gives you a much better chance than if you were to negotiate your debts on your own.
They are trained in advanced negotiation skills, know the industry jargon, and have your legal rights and best interest in mind when handling your debt settlement.
How do I choose a great debt settlement attorney?
Every debt settlement is unique. This is why the best debt settlement attorneys analyze every detail of your financial situation to develop a personalized plan to negotiate with your creditors.
You can’t just choose a debt settlement attorney based on their education because it doesn’t mean they’re successful in negotiating down your debt. The best way to select an excellent attorney is by checking out their reviews. If the debt settlement attorney you’re interested in has happy clients, you’re already on your way to a debt-free life.
How much does a debt settlement attorney cost?
Most debt settlement lawyers charge their clients based on contingency, so you won’t have to pay anything upfront. However, they will take a percentage if you win negotiations with your creditors, and that percentage is usually based on how much you owe or how much they saved you.
The best debt settlement attorneys always establish a rate upfront and never include any surprise fees.
It’s important to note that the Federal Government considers settled taxable debt income. So, make sure you discuss this with your attorney or accountant.
How long does debt settlement take?
If you take on negotiating your debt settlement, it can take several years to complete the process. A debt settlement attorney can expedite getting your debts settled because they already know what forms to fill out, who to talk to, and how to make competitive offers creditors will accept.
The primary benefit of hiring an experienced debt settlement attorney is that you have someone on your team who can take on creditors whenever you need them, and that’s a service well worth the time and price.
