Did you know that the average debt for households in the U.S. is about $135,065? With so much debt floating around it’s no surprise that people are struggling to keep their heads above the water.
If you have been struggling and have been considering filing for bankruptcy you might have options. A debt settlement lawyer could end up saving you from bankruptcy. Find out the five ways that a debt settlement lawyer could help you here.
5 Ways a Debt Settlement Lawyer Can Help You
Anytime we call in a professional for any type of job we need it’s better than figuring it out ourselves. It saves us time from learning and saves us from making costly mistakes that we regret. When it comes to dealing with mountains of debt an experienced debt lawyer like https://www.mccarthylawyer.com/ can become your saving grace.
Then you will be bringing someone to the table that has the knowledge and the skill to help you sort through your debt struggles. You don’t want to hire a company that promises you the world with clearing your debt but lack the legal expertise that a debt settlement lawyer has. Hiring any company without doing your homework can end up having a negative impact on your credit score.
1. Pay Less on Your Debt
A professional knows how to deal with creditors. A lawyer will know how to negotiate in your behalf for a lower settlement. If you are dealing with multiple creditors they will negotiate with each one individually.
When you add up all the debt settlement amounts, you will save a pretty penny when it is all said and done. An expert in this area will know how to negotiate with even the toughest creditors out there.
They might even be able to negotiate payment plans with the creditors that fit your budget. They have the skill and knowledge to negotiate and get their clients what will work best for them.
2. Not as Harmful as a Bankruptcy
If you weren’t aware when you file for bankruptcy your credit is affected for up to an entire decade. This can become a burden if you’re looking at making a large purchase in the next 5-6 years.
Choosing to have a debt settlement lawyer on your side will not affect your credit for 7-10 years if they find that settling your debt is best instead of bankruptcy. Keep in mind there might be cases where even a debt settlement lawyer feels that a bankruptcy would be in your best interest.
Every situation is different and a professional with the experience under their belt will know what is the best plan of action to help you.
3. Stop Harassing Calls
Something that you are more than likely tired of is multiple calls from creditors. Some creditors might even become abusive over time or begin to threaten you. What you might not know is that there are laws in place thanks to the Fair Debt Collection Practices Act to protect you from harassing calls.
A debt settlement lawyer will help you with stopping phone calls from creditors. A common misconception is that you have to file for bankruptcy to stop the calls but this is simply not true.
You have options such as letting them know in writing that you no longer wish to communicate. You can also tell them your preferred method of communication. Whatever you request as far as communication goes by law they have to respect your request.
Unfortunately, some don’t care and will continue to contact you – this is where a debt settlement lawyer will also come in handy. They know what to do.
4. Defend You
In case a creditor ends up suing you, having a debt settlement lawyer will come in handy. They will know what to do and how to defend you in case you are sued.
They can also defend you and represent you in court if a creditor violates any laws when it comes to harassment while they’re trying to collect their debts. This is another time where a lawyer will come in handy because most people have no idea if a creditor is indeed violating the law or not. Many people think that it’s ok to deal with it because they do owe the debt.
A debt settlement lawyer will be in your corner and will help you prepare a lawsuit against a debt collector that’s breaking the laws. This can be anything from threatening you at home or at work or from illegally contacting you at inappropriate times.
5. Learn How to Budget
A debt settlement lawyer understands how to break down what you can spend depending on your income. One of the biggest reasons people end up knee deep into debt is that they start off with one low monthly payment which eventually multiplies into multiple low monthly payments.
The problem is that these low monthly payments can add up to so many that you can’t afford them all each month. This puts people in a position where they are borrowing from one to pay the other and it ends up becoming a vicious cycle.
What Should You Expect?
When it comes to hiring a debt settlement attorney you can expect to pay less on your unsecured debt. The creditors that lent you the money took a risk because unlike a house or a vehicle they can’t take anything away from you for you not paying them back. For this reason, they will listen to an attorney and negotiate.
A creditor would rather have something back than nothing. Therefore they will negotiate for an even lower settlement when they know they’re dealing with a lawyer. At this point, the debt collector knows you’re serious about taking care of this pending matter.
Having a debt settlement lawyer will give you a better chance of paying less back than if you try to handle your debts on your own. The end goal of both a creditor and debt collector is to get someone to pay.
How Much Will You Spend?
Something you might be wondering is how much will lowering your payments cost you? You might also be thinking what’s the point of lowering my payments if I am going to have to spend it paying a lawyer?
Both good questions. The first question the answer is it depends on the lawyer. Some debt settlement lawyers will charge a percentage if they can lower your debts. This percentage can vary.
They might charge the percentage based on how much you save or based on how much you owe. Where you live and how much money you owe will make their rate vary.
Make sure you are clear on what it will cost you before saying yes. The last thing you need is hidden surprises that defeat the purpose of getting out of debt in the first place.
How Do You Know If You Need a Debt Settlement Attorney?
Sometimes you might be under the impression that you don’t need help but having help will help take away some stress. You want to figure out exactly how much debt you have each month and how much money you’re bringing in each month.
If the amount you owe each month is much higher than your income then this is a sign that you might need a debt settlement lawyer to help you in their area of expertise.
If you’re dealing with multiple debt collectors contacting you what seems like every minute of the day then this is another sign to call in the pros. Especially if you have informed the debt collector in writing that you no longer want to be contacted and they don’t respect your request. This is illegal and you have rights if they choose to ignore your letter.
A debt settlement lawyer will not only help you stop these multiple phone calls, emails, and letters. They will also help you with making matters right as far as legal services go. Bottom line as mentioned earlier it is illegal to continue contacting you after your request to please stop.
Time for Financial Stability
Hiring a debt settlement lawyer will eventually give you a type of freedom that you might have never experienced before. The freedom of having zero debt. This can be a long and difficult road to go through but in the end, it will be worth it.
Thanks to this journey you will learn how to take control of your spending in the future. You will also learn how to avoid spending on something that you don’t really need to spend on.
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