Debt Settlement Attorneys, How To Handle My Credit Card Debt?
My buddy Alex got in credit card debt troubles, recently. He learned the rules of the game by making every possible mistake while trying to get out of the bad financial situation. Finally, he got to the point where there was no other solution but to hire an experienced debt settlement attorney in order to get out as clean and as painless as possible.
The amount of harassment from the collecting agencies was unbearable. It all stopped when the things got into the hands of the lawyer, though.
Debt settlement attorney services are useful when you need to negotiate unsecured debts like credit cards, medical bills and department store cards. Things like mortgages, student loans, alimony and child support fall into the category of secured debts and not much can be done by a debt settlement lawyers.
Debt settlement attorney is basically legal representative of a consumer who is specialized in negotiating with creditors to reduce the amount of debt that a consumer has to pay. They work as a middle man to bridge the communication gap between debtor and the creditor.
Finally all the correspondence was taken over by the mediator and the harassments disappeared from his life. All he had to do is pay monthly lump-sum settlements as agreed between the debt consolidator and the creditors.
The attorney negotiated directly with all the creditors. The basic purpose of this negotiation was to minimize the remaining debts by a certain quantity. He also negotiated about eliminating the consumer late payment penalties and minimizing the interest rates. In this regard the lawyer wrote a contract that all the creditors and collection agencies will directly contact with the debt settlement attorney and they will not disturb the consumer any more for debt repayment.
Debt mediation addresses the amount owed (principal) as well as interest and fees, sometimes reducing the total obligation to as much as 40% of the original debt. Creditors prefer such settlements to the risk of bankruptcy and report such settlements "paid as agreed" on the consumer’s credit record.
Your credit could, however, be affected in a negative manner. Some creditors will not mark their debt paid as agreed, and it will remain on your credit report for a number of years. Consumers still opt for debt settlement because they find it preferable to bankruptcy. Usually, the way it is reported on your credit record involves the words "Settled" or "Settled as Agreed" or "Paid as Agreed". However, all the late payments may remain on your credit report until the statute of limitations runs out. At that point, credit repair might help to remove the negative marks if the reporting creditor fails to provide documented proof to the reporting agency.
Debt settlement attorney also takes an initiative in managing consumer credit history and credit scores. They do it by removing any confusing, unsupported and wrong entries on consumer credit reports.
My buddy Alex got out of this story without any bad records on his credit history and all debt settled down in a proper manner.
I hope that you’ll learn the lesson from the story above and do the right thing when experience a similar situation in your life.
Debt Settlement Law Firm
At the Law Office of Bonnie L. Canty, PA, our debt settlement attorneys are passionately committed to helping you achieve debt freedom.
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