Beitchman & Zekian Blog

Legal Information in Plain English

Debt Settlement

With the economy lagging and many people experiencing long bouts of unemployment, it is no surprise that consumer priorities have changed.  Many people have had to deal with a reduction in salary or wages, a wage increase freeze, or unemployment altogether.  This, however, does not mean that bills stop showing up in the mail.

Many consumers need a reprieve – maybe nothing as drastic as a bankruptcy filing, but perhaps just a reduction in their debt so that it is more manageable.  You may decide to go with a debt consolidation office, however this is not always the best method as the account may get charged off and/or a negative reporting made to your credit report.

Some consumers seek to settle the matter before it gets to a collection agency; this means dealing with the bank that extended the credit in order to convince them to take less money to settle the account.  This is not always easy and, from time to time, you will have to deal with an unscrupulous agent who promises one thing and then changes the terms or conditions the settlement on a lump sum or higher payment.

To get through the slump, you may want to consult an attorney to assist you with the settlement negotiations.  Although attorney’s fees are inevitable for the service,  when $30,000 of debt settles for anything less than the total amount, paying someone to make sure it is done right seems like a good trade off.

Advertisements

2 Comments»

  Nail Deco Of The Week #82 wrote @

Hi, last few days I was looking this exact article, thank you very much and keep writing.

  Michelle wrote @

Thanks! Hope this was helpful, especially now at the end of the year when most people are looking to get out of debt for the new year, or manage their debt due to holiday overspending.

Good Luck!


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: