Understanding Debt Negotiation
For individuals who are struggling with large amounts of debt, there are options to address that debt, while repairing your credit over time.
Debt Negotiation is not credit counseling or debt management. This process is not intended for those consumers who can budget their money effectively or who are regularly paying their bills on time. Debt Negotiation is the first step in seeking debt relief and is an aggressive approach to addressing significant debt without filing for bankruptcy.
The crucial difference is that individuals using Debt Negotiation are looking for debt relief options, such as debt settlement, because they find themselves dealing with a financial hardship and want to address the debt with their creditors without permanently marring their credit.
What Makes Debt Negotiation Beneficial?
Debt Negotiation provides a viable option, and for some individuals, is the only alternative to accomplish their goal of being debt free. For your creditors, this is a business transaction, one where they would rather receive some financial compensation instead of receiving nothing at all.
Still, this option does not happen overnight. It is a process, and with Effective Legal Debt Solutions, we take into consideration all aspects of your financial life, creating a plan that works to help you achieve the goal of being debt free. This plan will take your current budget, creditors, and financial goals to create a plan that is budget friendly and realistic for your situation. That plan can be executed over time to address your creditors but without the damaging impact and costs associated with bankruptcy.
Using Debt Negotiation, often known as Debt Settlement, you can receive help in negotiating and lowering unsecured debts, thus taking the strides to address your financial situation effectively. Debt Negotiation allows you to tackle your debt, instead of ignoring it and making the situation even worse.
Another benefit of Debt Negotiation is that you can enroll a variety of unsecured debts in the program, particularly your credit card debt.
Finally, this option is not another high-interest debt consolidation loan, a 2nd mortgage against your home, or a loan against your future retirement. In fact, it is a cost-effective method that allows you to address your debt without additional interest payments, and over time can give you a clean financial state. At Effective Legal Debt Solutions, our representatives can assist you through the process. Call 833-827-3285 to speak with one of our representatives or complete our online form and our staff will contact you to discuss your unique situation.
What Are the Steps of Debt Negotiation?
The first step in Debt Negotiation is to sit down with one of our experienced and knowledgeable staff to create your custom Debt Negotiation plan. Once it is defined, then you start making monthly payments that fit into your budget. This process creates a savings account that will continue to grow. Once it reaches the critical number, our team of experienced negotiators will skillfully negotiate a settlement with each of your creditors and apply the funds in your account to those settlements. Once a settlement is agreed upon, our team will move on to the next creditor, until all your enrolled accounts have been addressed.
Effective Legal Debt Solutions' Debt Negotiation Program is focused on helping you find the best plan to deal with your debt.
Addressing Your Debt
Many creditors are not willing to negotiate without a demonstration of your financial hardship. There are a variety of circumstances that can impact your finances, including job loss, income reduction, medical expenses, illness, overextension of your finances, and even death.
With financial hardship, you have the option of negotiating your debt or filing for bankruptcy. The costs associated with bankruptcy can be significant, including court costs and years of repairing your credit. Negotiation, on the other hand, can save you the costs associated with the court, allowing you to effectively address your unique situation.
Connecting With Creditors
While you are working through the Debt Negotiation program, your creditors and collection agencies may still attempt to contact you regarding your debt. The Fair Debt Collection Practices Act (FDCPA), along with other state and federal laws, define what creditors and collection agents can do and what they cannot do.
While creditors do have the right to contact you, the Effective Legal Debt Solutions team can provide you with literature and information to help you understand your rights under the FDCPA and provide you suggestions on how to handle the calls you do receive during the negotiation program time period.
Is Debt Negotiation the Right Solution for You?
To determine if Debt Negotiation is right for you, consider the following scenarios and if they fit your current financial situation:
- Paying the minimum payments on your unsecured debts, while living paycheck to paycheck
- Borrowing money to make your debt payments
- Loss of income due to unemployment or wage reduction
- Medical conditions with increasing costs
- Financial missteps that have snowballed out of control
If any of these fit you, consider a Debt Negotiation or Debt Relief program as an avenue to address your unsecured debts. Doing so can help you to reset your financial situation and move forward debt free.
Keep in mind, however, that there are risks and rewards to weigh before deciding if this is the right course for you. Learn what debt relief options are available by contacting Effective Legal Debt Solutions at 833-827-3285 to receive a free consultation based on your unique financial circumstances or fill out our online form to be contacted by one of our experienced representatives.