Beitchman & Zekian Blog

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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.