A debt negotiation attorney is a lawyer who can help eliminate or reduce your debt. There are times when a debt negotiation service will urge you to file for bankruptcy, but most of the time they will negotiate with your creditors to reduce your last payment.
One benefit of hiring a debt negotiation lawyer is that they have experience in getting a better deal with a creditor than you could get for yourself. Statistics suggest that when a debtor calls a creditor to negotiate a settlement, he or she still ends up paying about 75 per cent of every dollar owed. An experienced debt settlement lawyer can get this number down to 50 or even 60 per cent.
When to Use a Debt Negotiation Attorney
Debt negotiation attorneys are not the answer to every debt problem. If you want to hire this debt help service make sure that your debts meet the following conditions:
- Your Debt is Significant. A good debt negotiation attorney is not cheap; they often charge fees from $500 to $1000. If the amount of your debt is less than $1,500, for example, chances are you’ll pay more than you would have paid had you simply paid off the debt. Depending on the amount of settlement accepted by the creditor you would have saved more from the attorney fees if you had negotiated with the creditor on your own. So, only hire a debt negotiation service if you owe several thousand dollars.
- Your debt is unsecured. Do you have secured or unsecured debt? Your car loan, for example, is a secured debt, because if you don’t pay on the loan, your car can be repossessed. Your credit card debts are among unsecured debts, which will be collected aggressively by your creditors before they’re finally willing to let them go.A debt negotiation agency has some experience in settling your debts on your behalf if the loan is not secured. In the case of a secured loan a debt settlement service is not effective because very few creditors are willing to negotiate — they just come and take the property.
- You place a reasonable time limit. Are you planning to get a loan in the near future? Debt settlement takes some time to achieve a favorable negotiation outcome. If you set an unreasonable date to reach a debt settlement you’ve weakened your debt negotiation attorney’s bargaining position significantly.
So, a decision to use a debt negotiation attorney can cost you a lot of money. However, if your financial situation meets the above conditions then hiring a reputable attorney at the right time can help reduce your debts up to 60 per cent of every dollar you owed. In addition, you can expect to relieve yourself of the stress caused by the debts.