Business Opportunities

One of the most powerful tools for obtaining relief from credit card debt is the use of negotiation to settle your debts. Consumers can handle the negotiations on their own the best they can or they can obtain professional help from a debt settlement attorney. There are distinct advantages to using attorneys who have specialized in this area of law. They have acquired the necessary contacts, credit debt statute knowledge and negotiating skill to craft the best possible settlement agreement with credit card companies. It is a definite advantage to have an aggressive debt settlement attorney fighting the credit card companies on your behalf.

Defining Debt Settlement

Statutes governing credit-card debt settlements can become complex, and the unwary consumer could negotiate themselves into a corner if they make a mistake. A skilled negotiator succeeds in reducing not only the monthly payments, but the amounts owed on the cards, eliminates late fees, penalties and those nasty interest charges that make it so difficult to get on top of your credit card debt. One great advantage of the strong negotiator might be the ability to save any hits to your credit record, by getting the companies to agree not to make any negative reports to the credit rating companies, and to have negative history removed, or at least softened.

Debt Settlement Companies

Debt settlement companies also specialize in helping consumers get out from under debt and deal with creditors on your behalf. However, the debt settlement company representatives who handle your case are not attorneys. They do not have the legal clout of a debt settlement attorney who has been bar-approved and frequently belongs to a law firm. Laws give attorney representatives the power to stop all collection activity–telephone calls, letters or collection action–with appropriate communication with the credit card company or any collection agency to which the creditor has turned over the debt. Non-attorneys do not have this legal power. You do not want to take the chance of being involved in a debt-resolution situation involving a company operating illegally in your state. Many states ban non-attorney companies offering debt-settlement counseling on a for-profit basis. An attorney can ensure that you are following the laws of your state involving debts so that no creditor can take you to court with a likelihood of success. The fact that you have legal representation is a great deterrent to credit card companies taking legal action. If your case does result in litigation, you have an attorney familiar with your case history and ready to defend it in court along with all his or her own case activities.

Self-Help Debt Negotiating

Negotiating with credit card companies is not a skill most consumers have acquired. On the other hand, credit card companies have plenty of experience and all the legal help and training that all their money can buy on their side. An attorney battling on your behalf will not be fooled, intimidated or out-maneuvered by the credit card company negotiators. You have the further peace of not dealing with telephone calls, mail and threats. Your attorney will deal with all of them and put a stop to most of them. Credit card companies understand that they need to deal professionally with professional debt settlement attorneys and usually have special liaisons to deal with attorneys. These liaisons frequently have the authority to negotiate final decisions. Your attorney will have their contacts with major creditors and will know the policies and tolerances each company has, and what each is usually willing to do to settle a debt. Of course, attorneys charge fees for their services. Debt settlement attorney fees are usually based on a percentage of the debt being settled. You need to look over any terms of the contract with the attorney to make sure you can handle them, so you don’t end up with yet one more creditor problem.

Selecting a Suitable Debt Settlement Attorney

Debt settlement attorneys advertise on television, in the yellow pages or in flyers through the mail. You should not pick one at random–seek references through family or friends. Check out online resources and blogs about potential attorneys. When you have located three potential attorneys who are debt specialists, you should take advantage of the free consultation such attorneys usually offer and ask for the names of clients who are willing to provide references. Speaking in person will let you know if this attorney is someone who will treat you and your case with respect and has the skills to deal with credit card companies vigorously on your behalf. Be sure to save money once you get out of debt.