Are you struggling with debt? Find out what is best for you ! (Client work)

It’s always a tough decision to determine between a debt settlement company or hire a lawyer to work on your struggling debts. Although in every possible case, it is considered best to hire a lawyer and avoid a debt settlement company. Make sure to hire an appropriate law firm in order to help you work out with your creditors.

Let’s talk about how these debt settlement companies actually work?

Generally, these companies ask you to make payments while they consult with your creditors. Debt settlement firms usually make their customer believe that they reach out to creditors to settle your unsecured debts. They often demand huge payments from their customers that include your past and current savings and a monthly charge in order to work and communicate with the creditors. Once you have done the settlements, these firms contact your creditors and offer them a big value, which is less than what you owe.

Debt settlement companies charge more in comparison to lawyers. 

 Apart from that, debt settlement firms also charge some contingency fee. This fee is a percentage amount that is based on your savings, future settlements, and other set-up fees. Customers need to be very aware and careful while making payments and giving details to debt settlement companies, as these firms don’t mention the risks that are associated with the process.

 As these firms are only for their profit maximization and revenue making, it is essential for a customer to know about the scams and always go for a law firm instead of a debt settlement company. These firms will increase their amount and fee agreements once you avoid making payments to them. They will also impose high-interest rates and added fee charges. Debt settlement companies also neglect the fact that your credit will take a serious hit if creditors report missed payments to the credit authorities.

Why should you hire a law firm instead?

Settling your creditors and unsecured debts is best done by a certified law firm. An experienced attorney will even accompany you through effective legal opinion and will understand and figure out your condition. What debt settlement companies can’t do is to represent you in a situation where the creditor files a lawsuit. This can only be done by a sterling debt law firm. An able attorney will provide you with all the possible options and actions you can take in every possible situation. The attorney will also guide you and help you figure out whether you should settle your debts or file for bankruptcy, whereas a debt settlement company will only try to persuade you to settle your unsecured debts. An attorney will even help you and stand by your position if you ever get sued. Apart from that, also if a creditor seeks to violate the law, your attorney can provide special guidance in order to handle and proceed with the situation which a debt settlement company won’t. 

Keeping these benefits in mind, you should also be aware of bad debt settlement lawyers in the way. An attorney must have a certificate and is supposed to have ethical norms that are essential in order to work in the position. Customers must be aware of debt settlement companies who hire lawyers to work according to them. Even in some states, attorneys might bond and team up with a debt settlement firm in order to capture maximum customers and demand high fees and interest rates by winning their trust.

Can you settle debt on your own ? 

Another useful option in order to settle your debts is to do this on your own- Yes, you can arrange a debt settlement by yourself. It is essential to know about your creditors here. Once you are sure that you want to settle your debts rather than applying for bankruptcy, and your creditors are not causing any difficulty for you, it is best to not hire an attorney. You can save money and negotiate your own settlements for a while to maintain a balance and control the process. Also, hiring a lawyer to represent yourself might not lead to a positive view in front of your creditors.

 Analyzing all the key details, it is best to avoid a debt settlement company and go for an authorized attorney or even settle debts on your own.