Do You Need To Hire A Debt Settlement Attorney?
Do You Need To Hire A Debt Settlement Attorney?
Article by Brian D. Hawkins
As discussed in Clear Debt Solutions , debt settlement should be one of the last resorts to clear or reduce debt. Debt settlement should be used as a way to avoid bankruptcy, for example, not a simple matter such as creditor or collection harassment. Settling your debt for less than payment in full hurts your credit as well as the industry as a whole.
Assuming you have determined debt settlement is the only logical clear debt solution for you, do you require a debt settlement attorney, a debt management service or can you get by on your own? This is going to be determined by several factors. The end result is the same whether hiring a debt settlement attorney, a debt management service or taking the DIY approach. You, or the attorney or service on your behalf, negotiates with the creditor or collector in an attempt to mutually agree on a reduced balance to consider the account closed and paid in full.
How far has your financial situation advanced? Are you one step from bankruptcy? Are you at real risk of wage garnishment? If so, a debt settlement attorney that specializes in debt reduction may be the best choice. A debt settlement attorney is, in most cases, going to be the most expensive approach but can also be the quickest and most effective.
Don’t confuse a debt settlement attorney with a bankruptcy attorney. There are some lawyers that specialize in bankruptcy shielded by a debt settlement or negotiation illusion. It’s not the same thing. At this stage you are trying to avoid bankruptcy. Don’t allow an attorney to talk you into it.
If your current financial situation is bad but not so extreme that you are looking at bankruptcy then you may want to begin researching a debt management service. Use extreme caution when looking for a debt management service or debt reduction service. There are a lot of scams as well as unprofessional outfits that will cause more harm than good. This route is easier than doing it yourself and a little less expensive than hiring a debt settlement attorney but it requires a little investigation.
Tackling reduced debt settlement on your own seems daunting but it’s not that complicated as long as you are insistent and consistent. You won’t have the same ‘pull’ as a debt settlement attorney but no one is going to have your interest more at heart than you.
One thing to note is creditors are not going to consider accepting a reduced payoff if you are current on your loan payments. Why would they? Keep in mind debt settlement is a last resort for you but it is also a last result for the creditor or credit collection service. They aren’t going to settle unless they believe that’s the only, or at least the easiest and cheapest, way to collect the debt. Typically you aren’t going to have much success settling your debt until you are six months or more behind in the monthly payments and are no longer paying. I am in NO WAY suggestion you stop paying the debt you owe. If you are not that far behind I recommend you seek help getting caught up on your bills and get your finances in order before it gets any worse- not try dodging your financial obligation.
In short, a debt settlement attorney should be an option in only the most extreme and urgent cases. You can achieve similar results on your own with a little more effort while saving attorney fees.
About the Author
Another fine article by Finance Guru Brian D. Hawkins. Subscribe to Brian’s Hot Money Tips and download his free eBook today.
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www.aadrsite.org We are a debt consolidation non profit organization composing a corporation of debt counseling professionals here in America. A council of debt specialists in debt reduction and a law center of complete debt solutions. www.aadrsite.org – created at animoto.com
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