Are you feeling overwhelmed by your accumulating debt? Are you worried that no matter how hard you try, nothing is helping to lower the balance? If so, debt settlement might be the solution for you.
Debt settlement is a process in which creditors and consumers work together to reach an agreement on how much of a consumer’s unpaid debt needs to be repaid. In some cases, this can even lead to reduced balances on outstanding debts or getting rid of them completely!
Keep reading if you want to learn more about what settling your debts would look like and other important information about the process.
What is Debt Settlement and How Does it Work
When a borrower is unable to pay their debts to their creditors, they may choose to enter into a debt settlement agreement. To avoid declaring bankruptcy, the borrower can try negotiating a debt settlement with their creditors. The borrower can work with a debt settlement company that will represent them.
The typical process for a debt settlement is as follows:
- The borrower provides a description of their monetary predicament to a debt settlement firm.
- The debt settlement company will suggest that the borrower stops paying their creditors and pays the debt settlement company instead, but at a reduced payment rate.
- The debt settlement company will start negotiating with the borrower’s creditors for a debt settlement.
- If negotiations are successful, the debt settlement company would start the settlement process by paying the borrower’s creditors and ending all unsolved debt.
Benefits of Settling Your Debts
Settling your debts can be a daunting task, but the benefits are well worth the effort. One major advantage is the improvement of your credit score.
When you settle a debt, you are showing lenders that you are taking responsibility for your past mistakes and are committed to improving your financial situation. This can make future borrowing easier, as lenders will see you as a lower credit risk.
Additionally, settling your debts can give you peace of mind and reduce stress. The constant burden of debt can weigh heavily on your mind, affecting your health and relationships.
By taking care of your debts, you can focus on other important aspects of your life. So, while settling your debts may not be easy, the benefits can truly be life-changing.
Know Your Rights – Protect Yourself from Abusive Practices
It’s crucial to be informed of our rights, especially when it comes to protecting ourselves from abusive practices. Whether it’s in the workplace, in a relationship, or simply in everyday interactions with others, understanding your rights can make all the difference.
No one deserves to be subjected to bullying or harassment, and having knowledge of your rights can empower you to take action and stand up for yourself. It’s important to do your research and familiarize yourself with your local laws and regulations, and even seek legal advice if necessary.
Remember, no one has the right to make you feel unsafe or uncomfortable, and knowing your rights is the first step in safeguarding yourself against abusive practices.
Why Trust Gershfeld Law Group?
There are many law firms, and debt settlement companies, that “claim” to be able to get you out of debt. Here are some reasons why it is so important that you are represented by a reputable law firm, and not just a debt settlement company.
The Gershfeld Law Group, being a law firm, is held accountable to a strict standard of care. We are regulated not only by government and administrative bodies but also by the State Bar in each of the jurisdictions where we operate. This means you will receive quality service, honest and transparent communications, and zealous representation.
- Full Legal Representation
As a client of Gershfeld Law Group, you will receive complete legal protection and representation, which sets our firm apart from other debt settlement companies that don’t provide legal protection.
Some debt settlement companies claim they can do the same job for lower fees, but it’s not entirely true. Major creditors often prefer to work with attorneys rather than debt settlement companies. Debt settlement companies cannot provide a complete solution because they may be unable to settle all of your accounts, leaving you to manage them independently.
- Quality Service and Better Settlements
While debt settlement companies may be able to settle some of your accounts, our legal team can provide even stronger negotiations and oral advocacy skills. We have a thorough understanding of the law and know how to utilize it not only to protect you but also to secure the best possible settlements for you.
In the event you are ever sued, we go against them lawyer to lawyer. We speak the same language and get the best, fastest resolutions. Law firms will not speak to debt settlement companies, but they must speak with other lawyers.
Takeaway- Debt Settlement Is The Way To Go
Debt settlement is a viable option to explore if you find yourself in severe financial and debt distress. Just make sure you are well informed of your rights, liabilities, and responsibilities before engaging in a debt settlement process.
Strategically planning and budgeting to ensure that all payments to creditors are paid on time each month can also help to minimize the chances of having to settle your debts.
Encouraging regular reviews of credit reports and asking debt holders for solutions prior to full default can also prevent long-term damage to credit scores. With proper knowledge, savvy financial resources such as debt settlement programs could potentially save hundreds of thousands of dollars over the lifetime of consumers’ debts!
With the Gershfeld Law Group, you will have full, highly competent, representation by a law firm that specializes in legal debt resolution. We have built a solid reputation for being skilled and zealous advocates for our clients.
We have built excellent relationships with most Creditors, and the Collection Agencies or Law Firms that represent them. We don’t just deal with the “collection departments,” we go straight to the top, and get our Clients the best-negotiated agreements!
If you want quality service from an experienced and knowledgeable law firm, call us for a personal and free consultation.