If you are having difficulties managing your minimum payments on unsecured debts, you have probably started looking for solutions. Among the potential solutions you are likely to find is debt settlement with an attorney. While this might sound like a great solution to your problem, you need to understand how much the attorney is likely to charge and the potential problems that might arise in your situation.
Attorney Charges:
If you have ever wondered what a debt settlement attorney charges, you are not alone in your quest for information. While particular prices can differ between attorneys, you should expect a high rate as a general rule.An attorney spends years in law school and expects to receive a higher commission for services. Even when a lawyer primarily provides information, he or she will expect a payment. The legal information that a lawyer is able to obtain is significant, but a debt relief negotiation company is able to obtain the same information without the added fees.
While attorneys have different methods of charging for services, you can expect that the rate is higher than a debt relief company. For example, the attorney might charge as much as 25 to 30 percent of the settled amount on top of the maintenance fees added to your account each month. Maintenance fees might cost as much as $50 a month, which is hard when you are already struggling with those minimum payments and household expenses.
Problem With Attorneys:
The expense of working with a debt settlement attorney is not the only factor involved in understanding whether the attorney is right for your needs. Other problems might arise that will make you wonder if an attorney is worth that high cost.
The particular problem with an attorney is that he or she is not required to actually negotiate with your creditors or settle your account. An attorney can charge you for offering legal advice, giving you information that is commonly available through debt relief services and helping you save up money to settle the account.
Services provided by an attorney do not necessarily include the actual negotiation and assistance dealing with creditors. Since the attorney might not start the negotiation process, you can potentially face calls from collection agencies and similar services that you might want to avoid.
A lawyer will also have specific time constraints you need to consider. Many attorneys who work on debt settlement are also involved in bankruptcy cases and similar debt relief solutions. As a result, you might find that the amount of time put into your needs is limited. Even if the attorney starts negotiations, he or she might take longer than a service that focuses specifically on settlement alone.
Debt Relief Companies:
Working with a debt relief company for your financial needs is usually the better solution when compared to working with an attorney. Not only are the services less expensive, but you have professionals who are willing to help you with bad spending habits and provide you with information that will make your situation after settlement better.
Debt relief companies are able to offer settlement services through negotiation with the creditors. Since the company specifically focuses on negotiation with creditors, you can expect timely results that help put a stop to collection calls.
Beyond the timely results, you will be able to voice personal concerns about your situation and get advice that can help you improve budgeting skills and identify potential spending habits that might be increasing your debts inadvertently.
Debt relief solutions through a specialized company are also a reasonable price. Since the company has professional negotiators rather than attorneys, you can expect the services to have an affordable rate. Furthermore, the company will not charge without providing services. Until one of your accounts is fully settled and eliminated, you will not need to pay for that service.
The debt settlement through negotiation companies will usually take around 24 to 48 months before all of your accounts are eliminated and you can start over without high interest unsecured debts. The impact on your credit score is only temporary, and in most situations, it is possible to start working on improving immediately after the accounts are settled.
While you might want to obtain some legal advice, it is important to keep in mind that in most situations the information you need does not require an attorney. Most information is available through the settlement company, so you will usually not need a lawyer for your debt situation.
If you are one of many Americans who is considering the services of a debt settlement attorney, you need to know more than just the fees. If you want more information about debt settlement solutions or assistance with your problems, call us today or fill out the form for a free debt analysis.