In these tough economic times, you are probably barely holding on in your struggle to pay off your debts. However, you may be able to work with your creditors, or even debt collectors to make things more manageable. This is often referred to as debt settlement or debt negotiation. While you may attempt to get a debt settlement by yourself, your lack of training may adversely affect your chances at succeeding. It is therefore essential that you hire a Debt Settlement Lawyer with years of experience in handling debt settlement. Here is a guideline for that may help you to get out of your debts gracefully.
Negotiate deals with your creditors
You may request your creditors to lower your monthly payments on a permanent or temporary basis. Your creditor may also reduce the interest rates on your debts, or allow you to make interest-only payments in a given period. However, it is important that you review your budget to avoid offering more than you can afford. Start paying the debts in their order of priority.
Take loans to repay the debts
You can repay your debts efficiently by consolidating them and taking a loan to clear them. However, this can only make sense if:
1. The interest rate on the new debt is considerably lower than the rates on the debts you are paying off.
2. The monthly amount payable on the new debt is lower than the combined monthly total for the debts you are consolidating.
3. You can make a commitment to refrain from using credit until you have paid off the new debt.
4. The new debt bears a fixed interest rate.
Get assistance from a credit counseling agency
The credit counseling agency may give you the much-needed assistance in debt settlement while charging you little or nothing for their services. A reputable agency will help you in:
1. Setting up a household budget.
2. Evaluating your budget to suggest alterations that will help you get out of debt expediently to avoid the loss of assets.
3. Negotiating reduced payments with your creditors while putting you in a debt management plan.
If you owe others too much relative to your income, you may want to consider filing for bankruptcy. For this purpose, it is advisable that you hire a Debt Settlement Lawyer to get you through the complicated process. Contact Hitchcock & Associates, P.C. Visit us for more information.