What is Debt Negotiation, debt settlement and/or debt restructuring?
Where does a Debt Negotiation company fit into my debt resolution goals?
How much money can Debt Negotiation save me?
What is it?
How quickly can I be out of debt?
Why would my creditors agree to accept less than the amount I owe them?
How does Debt Negotiation differ from credit counseling?
Consumer Credit Counseling Agencies (CCC) are organizations that provide counseling services to help you budget and organize your finances so you can pay back your debt. CCCs work to lower your interest rate so you can pay back your creditors. While some CCCs may do a good job of orchestrating a repayment plan, more commonly known as a Debt Management Plan (DMP), many of them often are funded by the very creditors you are trying to settle with. So, you may end up with a repayment plan that is in your creditor’s best interest and not your own.
A Debt Negotiation company is funded entirely through the fees it collects from clients, so they work entirely for you, not your creditors. A Debt Negotiation company will negotiate settlements with your creditors rather than keep you in the minimum payment, debt cycle where you will likely get nowhere.
Should I consider bankruptcy?
Can I still file a bankruptcy if I try the debt settlement and it does not work?
What about debt consolidation?
Debt consolidation is when you combine all of your various debts into one large debt and you attempt to borrow your way out of debt. The most common debt consolidation loan is a home equity loan, since most consumers in a financial bind do not qualify for an unsecured loan. Home equity is the fair market value of your home minus what you still owe on your house. Consumers typically take out a home equity loan to help pay off other credit card bills, but this loan just moves the debt from unsecured accounts to a loan that is backed by their house to a secured debt. A debt consolidation loan secured with your home is very risky, because you could end up losing your home if you are unable to pay the loan back.
For instance, if you take out a home equity loan and cannot afford to repay your lender, you could face foreclosure and eventually lose your home. Many consumers who chose a debt consolidation loan end up charging new debt on their credit card accounts, which increases their overall debt burden and chances for encountering financial difficulties. Debt consolidation may be an appropriate debt relief solution for some, but it may be in your best interest to investigate other debt relief options first. You should be very cautious about changing unsecured debt into secured debt.
Are there any adverse things I should know about my Debt Relief options?
As you can see, each Debt Relief option will have pros & cons. Once you are educated on each available Debt Relief option, you can make a more informed decision as to what is best for your particular situation. Effective Legal Debt Solutions will give you the information you need to make this decision and help you each step of the way.
Who qualifies for a Debt Negotiation program?
Who doesn’t qualify for a Debt Negotiation program?
What types of debts qualify for a Debt Negotiation program?
Below are examples of unsecured debts that typically qualify for debt restructuring:
- Unsecured Debt
- Credit Cards
- Medical Bills
- Personal Loans
- Department Store Credit Cards
- Unsecured Bank Loans
- Bank Overdraft & Associated Fees
- Gasoline cards
- Jewelry Store Loans
- Furniture Store Loans
- Repossessions (Deficiency Balance)
- Business Debt (Restrictions Apply)
- Computer Loans
- Judgments (Must Be Uncollectable For At Least 12 Months)
- Finance Companies
- GE Money
- Care Credit
- Payday or Cash Call Loans
**Acceptance of any particular debt is dependent upon the individual facts and circumstances and approval of a lawyer. Effective Legal Debt Solutions reserves the right to accept or reject any debts upon enrollment.
Can’t I negotiate a settlement on my own?
You can certainly attempt to negotiate a settlement on your own. But, if you do, make sure you do it right, as we receive many horror stories from consumers who were taken advantage of by their creditors. Our highly trained negotiators have years of experience negotiating and securing excellent settlements with creditors and debt collectors. Furthermore, we believe that our law firm affiliates stand out in creditor’s eyes as honest and reputable law firms that do not enroll unqualified clients (e.g. those consumers who have the ability to fully repay their unsecured debt) and also creditors know that our affiliate law firms process their settlements efficiently reducing time and collection cost for the creditor.
To successfully negotiate and settle debt on your own (among other important things) you need to understand the collections process, differences between various creditors and the right time to begin negotiations and agree to settlements. You must also understand how a settlement agreement is structured to make sure the agreement clearly spells out the negotiated settlement.
Debt Negotiation is a complicated process. If you’re not sure you have the knowledge, organization and self-discipline, you may want to leave it to professionals. Even if you have the time to learn how to save up, negotiate and settle your debts, you may still have some emotional attachment to the debt which could interfere with your objectivity. Professional debt negotiators maintain an objective position with the debt they settle, which means they are less likely to be intimidated by debt collectors.
If you find yourself struggling with debt, you deserve to know what debt relief options are available to you and your family. Contact Effective Legal Debt Solutions today to receive a free consultation and find out what Debt Relief options may benefit you. Call 866-265-8002 or fill out our online form and a representative will contact you.