Have debt collectors been hounding you? There may be a solution that does not involve bankruptcy. Debt negotiation is a process where you work with creditors to reduce the amount you owe. Often times, creditors will be willing to reduce your debt by 50 or even 60 percent but having the right approach can make all the difference.
There are a few ways to approach debt negotiations:
- Talk to your creditors and try to make a deal on your own
- Use a debt settlement company
- Hire an attorney who specializes in debt negotiations
Approaching your debt collectors without professional help can save you from paying a settlement company or attorney fees, but you run a high risk of losing money in the end. Debt negotiation is a nuanced field and if your creditors sense you don’t know the ins and outs of the game, they will likely take you to the cleaner while convincing you that you’ve made a great deal. Professional help is highly recommended.
A debt settlement company appear to act as an intermediary in the negotiations, but there is no guarantee they will talk your debt down to a manageable level. In fact, creditors are often less inclined to deal with you if you hire a settlement company. Meanwhile, they will continue to take your money and reassure you that you are getting the best possible deal.
Using a settlement company can work to your advantage, but be sure to research the company you are looking into and ask as many questions as you can think of to ensure all of the necessary information is being passed along to you. If you don’t ask, they usually won’t go out of their way to let you know either.
There are a couple differences between using a settlement company and an attorney. A good
debt negotiation attorney will be in your corner throughout the process. An experienced attorney will know the law and your rights better than your creditors or a settlement company. This means hiring an experienced attorney often offers the best outcome when you are negotiating down what you owe.
A skilled attorney will take the time to thoroughly investigate your individual situation and give you solid legal advice about how to proceed. If a creditor ever decides to open a lawsuit against you, having an attorney who is already intimate with your situation will also be a huge advantage.
