This article will help you discover:
- What type of and how much debt Americans have.
- How debt settlement might provide you with the relief you need.
- Whether a debt settlement lawyer is for you and what benefits they can bring.
How Big Of A Problem Is Debt For Individuals In The US Today?
The average credit card debt in the United States is about $8,500 per person, with an average interest rate of over 16%. The average person uses about 26% of their available credit and will likely pay off their debt in three to four years.
What Types Of Debts Do Americans Generally Have Right Now?
Most people have credit card debt. In addition, many Americans have other types of debt, including car loans, personal loans, and medical debt.
How Much Debt Do People Have When They Typically Start To Consider Debt Settlement?
Most people seeking consultation with our practice do so for two reasons: they either have:
- over $10,000 in debt;
- a pending lawsuit or garnishment pending.
It is better to seek legal consultation before a garnishment order is issued or a lawsuit filed, but most contact our practice after that point, unfortunately.
What Can Happen If The Debtor Simply Does Nothing To Resolve Their Debts? What Are the Creditor’s Rights in Those Instances?
The creditor has the right to pursue collection for the debt – they can charge off the debt. They can also get a judgment.
This means that debt will subsequently incur a judgment rate of interest, which can increase significantly over time. After the judgment, the creditor can seek a garnishment of wages, a bank account, and file a lien against your assets. This could include a lien against your home.
What Are Some Possible Ways To Settle Debts?
There are different ways to settle debts, including:
- Asking for help from family or friends;
- Taking a personal loan;
- Taking a title loan against a vehicle;
- Using a balance transfer from another credit card;
- Taking cash out via auto refinancing;
- Taking a loan against your retirement account or cashing out part of your retirement account;
- Using a debt management plan;
- Contacting an attorney to help you resolve the debt.
How Can A Debt Settlement Attorney Help Me?
A debt settlement attorney can help you stop a judgment. Further, a debt settlement attorney can not only prevent the judgment, but alleviate the need for you to go to court, attend a trial, or receive a garnishment. In addition, the debt settlement attorney can help you settle the debt by reducing the amount of debt and getting your repayment plan or lump sum settlement.
Why Is It Better To Hire A Debt Settlement Lawyer Rather Than Hire A Debt Settlement Company?
There are a couple of very clear benefits to hiring a debt settlement lawyer over a debt settlement company.
Debt settlement companies are known to charge fees that are not transparent. Perhaps even worse, you may have to accrue an amount in your debt settlement account with them over two years before the debt settlement company starts to work on your behalf. During this time, you may face multiple lawsuits and garnishments.
A debt settlement attorney will immediately attack your debt, helping you avoid a court date, incurring garnishment and judgments, and resolve your debt issues quickly.
Can Debt Settlement Through An Attorney Allow Me To Pay Back Less Than I Owe?
Debt settlement attorneys are adept when negotiating with creditors, leveraging their expertise and experience to resolve debts for less than the entire balance.
If an individual tries to contact a creditor without a debt settlement lawyer, they may end up negotiating with a collector working on behalf of the creditor. Collectors typically want a higher settlement amount because they are likely paid a commission for each debt they resolve.
Debt settlement attorneys can deal with other legal representatives at the creditor’s law firm, including paralegals and attorneys, ensuring a different or lower settlement authority. As a result, most creditors will agree to settlements of 75% or lower on a debt you may owe.
For more information on The Problem of Debt & Debt Settlement, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (240) 539-9393 today.
Call Now For A Complimentary Case Evaluation
Former Chapter 7 Trustee