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Today’s guest post comes to us from Debt Settlement Link.
Are you tired of weekly collection calls, little sleep, and a spiraling debt burden that is pushing you further and further behind your ideal life? With the current economy, today is a perfect time to present your creditors with a debt settlement offer. Let go of some unnecessary stress. A debt settlement attorney is specially trained to help you navigate the legal system and settle your unsecured debt for less.
What Is Unsecured Debt?
First off, what kind of debt qualifies for assistance? An unsecured debt is simply a financial obligation where the lender does not hold any collateral. Most credit card debt, department store debt, personal loans, and medical bills are unsecured and can be settled for less than you owe.
Examples of bills that are NOT eligible are mortgages, car loans, student loans, alimony, and tax debt. You may have other options for renegotiating these obligations, but they will not be part of your unsecured debt settlement.
Creditors make their money off interest payments and fees, so as long as you are able to make minimum payments, they will not be interested in settling. When you slip to 90 days or more past due and the risk of bankruptcy increases, most creditors will finally consider a debt settlement agreement.
The Next Steps of Debt Settlement
If you meet these guidelines and qualify for financial relief, your debt settlement attorney will work with you to prepare the best course of action for your situation. Typically, the initial plan involves contacting each creditor and negotiating reduced interest rates, debt forgiveness, or other payment plans. The goal is to eliminate fees, reduce your payment burden by up to 60%, and give you some room to afford regular payments. Your debt settlement attorney will take care of all communications with creditors and collection agencies, help you correct errors on your credit report, and give you the tools to get your credit history back on track. Keep in mind that settling unsecured debt will impact your credit history, but it is often a better route than giving up and declaring bankruptcy.
When you are beyond the help of credit counseling, debt settlement is an excellent solution. The small amount you will pay in attorney fees is well worth chopping your unsecured debt in half and getting your finances back on track.
How about you all? Have you used a debt settlement attorney to get out of debt? Did it work well? Were you satisfied with the results?
Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.
- First, I find it interesting that only consumer debt (credit card debt, etc) is eligible for debt settlement. I suppose that the creditors figure that secured debt (such as home mortgages) don’t need settlement since the creditors can merely repossess your assets to cover the debt. But, I wonder what happens if the market price of the asset dips way below the mortgage price? It seems that it would be in the lender’s interest to negotiate the debt.
- In my opinion, most people absolutely do not need to pay for an attorney to settle their debt. They either 1) do not have that serious of a debt condition and do not need to settle or 2) can do the same things on their own. So, make absolutely sure that you have exhausted your options before seeking expensive help such as an attorney.
***Photo courtesy of http://bankruptcyattorneysinillinois.com/