Money Card

Many people are struggling to settle large amounts of consumer debt at the moment. For example, one credit card with a balance of $5000.00 with an interest rate of 18% paying a minimum of $200 a month will take just over 11 years to pay off, and that is with no new charges going on the card! If you are struggling with debt and are considering bankruptcy, or worse a credit relief company, you should consider hiring a debt settlement attorney.

It is amazing how many television ads there are offering debt relief help. Even more amazing is the number of these companies who are being investigated for unfair or deceptive business practices or out right fraud.

Debt Settlement Companies

The first thing a debt settlement company will need is an upfront nonrefundable fee, which is based on the debt owed. Then they will likely advise you to stop paying your bills. The reason being is to supposedly encourage your creditors to settle. Then you will be required to make monthly payments to the debt settlement company. Do you see a gap in the logic?

Each month when you give the settlement company your check, they take their monthly fee off the top, then save the rest until a large enough amount is accumulated to offer a lump sum payment to one of your creditors. If you fall behind or are unable to continue making the monthly payments to the settlement company, they will stop working with you and keep your money.

Consider a Debt Settlement Attorney

A debt settlement attorney, on the other hand, must fully disclose their fee structure as well as the debt settlement process. Their conduct is governed by various laws and court rules as well as professional and ethics codes. Attorneys are licensed by their state to practice law, and have a sworn duty to represent your best interest. If your creditor takes legal action against you to collect the debt, unlike the settlement companies, a debt settlement attorney can represent you in court. An attorney can also legally stop the harassing collection calls!