Christian Debt Recovery

Debt Relief Of America Reviews

October 10th, 2008 |

Author: Gavin

How Can A Debt Settlement Attorney Benefit You?

If you are reading this article because the title caught your attention than chances are your stuck in a pretty deep financial rut; with the majority of your financial problems stemming from an overwhelming amount of credit card debt. If so do not feel bad or embarrassed right now there are millions upon millions of people all across America who are stuck deep in credit card debt. In this article I would like to present to you information concerning how a debt settlement attorney can really help you to get this mess figured out and put behind you.

There is also a good chance that if your reading this article you are either already falling behind on your credit card payments or are on the verge of doing so. In order to achieve a debt settlement you are going to have to fall behind if you haven’t already, there is no way around this.

Before continuing to go further with what a debt settlement attorney can do for you I would like you to understand why the creditors will not settle with you when you’re current.

If you are current with your monthly minimum payments and pay them their high interest each month why in the world would the creditors offer to settle your account for less than what you owe? They have no reason too, they have you precisely where they want you; stuck running on their “credit treadmill”. This vicious cycle is the minimum payment scheme at high interest; where you will be stuck in debt for over 38 years and pay back well over five times the original balance in interest alone.

So you must fall behind and unfortunately this is where many people will instantly be turned off from debt settlement and therefore dooming themselves to being financial slaves to their creditors for decades to come.

Debt settlement does offer some amazing benefits such as saving a tremendous amount of money and time; however the negative side affects of falling behind are real and you should be made aware of them.

But there is good news! A debt settlement attorney has the legal power to greatly reduce the negative effects of falling behind so you can still pursue debt settlement. Continue reading and I will explain the negative affect from falling behind and tell you how a debt settlement attorney can help alleviate that problem.

For starters you must realize your credit score will be negatively affected and this is something that no one but yourself can help to fix, no attorney, no company, only yourself. The initial process of falling behind on your payments is what will cause the detriment to your credit score. Thirty five percent of your score is made up of your payment history and this will take a negative hit. However after a few years this negative affect no longer holds the same value, reason being your credit score itself only reflects the past two years of your payment history.

Another thirty percent of your score is your debt to credit ratio. This is where debt settlement will help your score. Once you clear out your bad debts this ratio becomes a lot more favorable and will help your score to rebound. But if you are stuck deep in debt ask yourself what’s more important, finding a way out of debt or maintaining your ability to accrue future debt? And in many cases if you are stuck deep in debt even if you are still current your credit score will still be very low. Like I mentioned above your debt to credit ratio is thirty percent of your score is very negatively affected when you owe large sums of credit card debt. So the number one priority should be finding a way out of debt!

Now back to other affects of falling behind and how a debt settlement attorney can help.

One major inconvenience of falling past due is that the creditors will be calling you in an attempt to collect the debt owed. With this process the original creditor will hold onto your account in the beginning stages of you falling behind and by law has the right to contact you and nobody can stop that. However not long into the collections process they will hand the debt over to a third party collection agency. This is where a debt settlement attorney can step in and have the calls by law stopped, at this point they will only be able to deal with the law firm and are supposed to cease calling the client. This is according to the FDCPA (Fair Debt Collections Practices Act). Thus greatly alleviating the stress a debtor will go through when using debt settlement.

This is one nice benefit that a debt settlement attorney has over a standard debt settlement company. A debt settlement company has no legal standing to stop the calls from either the original creditor or the collection agencies. And any company that claims they can should raise an instant red flag to you!

Perhaps what scares people the most about falling behind on their credit card bills is the chance they will be sued. While this is a legitimate concern let me state that it is not the mainstay of the creditors. Simply put it costs them too much money and time to bring someone to court with no guarantee that they can collect the money. However it is a real possibility and whenever making any large financial decisions it is best to have all of your bases covered.

The benefit of having a debt settlement attorney if you were to get sued is that the attorney still has the legal right to contact the collectors’ opposing attorney and negotiate a settlement. In the vast majority of cases the attorney can keep their client from ever stepping foot in court and get the settlement all worked out from outside of the courtroom. Thus benefiting all parties involved, it is much easier for them to work out the settlement with a reputable attorney and know for a fact they will be receiving some kind of compensation for the debt; instead of spending money and time taking you to court with the chance they will never receive a penny.

There is also an issue that does not get brought up very often and this is “full disclosure” and attorneys must offer potential clients full disclosure to the debt settlement process. They have the State Bar to answer too and cannot mislead clients and not explain to them in detail how this process works. Then must fully review your personal unique financial situation to ensure this is the best possible debt relief solution for you.

Many unscrupulous debt settlement companies simply preach the benefits of debt settlement and never fully disclose to their clients the potential downfalls. This is what often times gives the debt settlement industry such a bad reputation.

I know I have been pretty much discussing the bad aspects of debt settlement but I feel that it is important for people to understand the whole process before enrolling with any company or attorney. But the reality is debt settlement has been helping millions of people find financial freedom again by helping them to regain control of their finances by breaking free from the shackles of credit card debt. The fact remains there is no other method of debt relief available that will help the debtor to save as much money and get out of debt as quickly, other than bankruptcy; which has a much worse affect on the credit and also stays a public record for life.

I hope after reading this you now feel more enlightened and can see the benefit of using a debt settlement attorney if you are stuck in a dismal situation with credit card debt. I welcome the opportunity to personally review your situation to see if you may benefit from the process, if you would like more information simply follow the link below and fill out an application.

About the Author

Stephen Bis is research and debt analyst for the largest debt settlement law firm in the country. A nationwide firm that has a debt settlement attorney in every state.