In these hard financial times there is a simple answer for those people who are buried under a mountain of debt: file bankruptcy. However, there is a way to avoid bankruptcy! There is the avenue of credit negotiation.
Debt negotiation is a simple process. What attorneys can do for you is help you take your balance and cut it down to a manageable one to three lump sum payments. For example, say you have a credit card that you maxed out at $10,000.00. In these tough financial times you could be paying this credit card off for many years to come with no hope of putting a dent in it. The high interest rates would keep adding to the total and you could end up in worse financial condition than you started in by paying of the minimum monthly balance.
Debt negotiation comes in after a few months of missed monthly payments. During this time a lawyer will verify that this debt is actually yours, then begin negotiations with the company. In many cases there has been success in reducing the debt by anywhere from 50% to 85%.
The important points to go over with the loan company when settling your debt are the following:
(1) What is your financial hardship? Did you lose your job? Did your spouse lose their job? Unforeseen medical bills? Your hours were cut back?
(2) How much money can you put towards paying off the debt in 1 to 3 payments? If it is a $10,000.00 debt could you afford a onetime payment of $3,000.00 (just an example).
(3) When negotiating credit card debt, usually companies will deal with you only when you are not making you monthly payments. Are you willing to let your credit go down during the pendency of this negotiation?
If you have any more questions or want to negotiate your debt, please contact our office at 333-4223 to speak with a professional today.