Learn How a Debt Settlement Lawyer Can Help You

A debt settlement lawyer can provide services to those who are drowning in debt can use but often don’t know about.  Many people don’t realize that they could be getting professional assistance to resolve some of their debt and credit problems. Debt settlement is a very complex process and there are lawyers who have specialized in making this possible for their clients. With the terrible state of the US economy, many people have found themselves facing a mountain of debt and not knowing how to get rid of it. In times like these, having the firm guidance of an attorney that specializes in dealing with debt reduction may be an excellent alternative.

There are three options when dealing with debt. The first is to set a budget and a schedule and then contact each of the creditors yourself and figure out a way to make payments. The second is to hire a credit counseling company that will negotiate with the debtors for you. Typically these companies negotiate your debt down to one single payment and take a much softer approach. However, most people still end up owning more than 75% of their debt and rarely get out of the debt in a short time frame.

A debt settlement lawyer is a completely different way of approaching your debt situation. An attorney will take a much more aggressive approach to solving your debts and while the approach may hurt your credit score in the short term, your lawyer will work with you to start building back your credit over a period of time. There is certainly some level of risk involved, especially with regards to your credit score, but most people who are in debt are already facing the potential consequences of not being able to pay their bills. It is always recommended to weigh the pros and cons of both situations before engaging in an aggressive debt reduction and elimination plan with the help of an attorney.

A debt settlement lawyer knows how to reduce your debts. They will contact all your creditors, from credit card companies to hospitals and let them know that they are now working on your behalf. The attorney will offer to work with the creditor to reduce the amount to a more manageable level and will use all of their skills to ensure that you have the best resolution possible. Next, the attorney will contact any collection agencies that have been assigned to your debt and negotiate with them to get a lump sum payment amount, waiving all penalties and fees. For your peace of mind the attorney will then become the point of contact who will deal with all creditors and collections agencies going forward.

Finally your debt settlement lawyer will review your credit report and work with you to ensure that it starts to improve. The attorney will contact the credit bureaus to make sure any errors or corrections that need to be made are taken care of, and as you pay off your debt will have that information reflected on your credit as well. This is a longer process than most people would like but in the end, you have the chance of starting fresh without the baggage of declaring bankruptcy or going to collections.