If you are struggling to manage debts and other necessary expenses, you have probably heard a little about lawyer based debt consolidation. The questions that will often arise are what is lawyer based debt consolidation and how does it differ from other consolidation services. Understanding the basics of how it works and the potential downsides of the option is a key part of making an educated choice to manage your debts.
Basics of Lawyer Based Services:
When you are struggling with debts and expenses, understanding the basics of helpful debt relief services is the key to finding the right solution. Working with a lawyer to solve debt problems might seem like the best idea, but it is not always the best option for every individual or personal needs.
Learning the basics of lawyer based debt consolidation is the key to determining if it is the best option for individual goals. A lawyer is a professional with a high level of education relating to law but not necessarily relating specifically to debt solutions. Due to the fact that lawyers might not have specialized education for debt relief, it is important to use caution when working with these professionals.
A lawyer based service will often work on consolidation and settlement through negotiation with creditors. The service is similar to other professional consolidation services, but the individual working with the creditors is an attorney.
The lawyer will start by looking at the situation and then talking to the creditor. The lawyer will work out a plan with the creditor to repay the debts, reduce the interest, waive fees and sometimes settle the account for a reduced price.
The Disadvantages of Lawyer Based Services:
The key to getting the most out of any debt relief service is understanding the potential downsides that are associated with the particular company. When it comes to services provided by a lawyer, the potential downsides might result in looking for an alternative that will work out better for personal needs.
As a general rule, lawyer based services charge a higher rate than many other debt relief solutions. An attorney is highly educated and expects a higher compensation for work as a result. Even though the negotiation does not require getting a law degree, the cost of the service from a lawyer is higher than the service provided by another company.
The service provided by the lawyer are the same as other debt relief services. Since the negotiation for reduced interest, waived fees and settlement are the same services provided by other negotiation services, it is usually not worth the extra cost. A lawyer will not provide extra services that help save more money or eliminate a higher percentage of the debt.
Time constraints are also a potential problem when it comes to working with a lawyer. When you are struggling with debt payments and expenses, waiting for negotiations to begin is not an option. The sooner negotiations start, the faster collection calls are quieted and you have peace at home.
Unfortunately, lawyer based services have a limited number of professionals working on the negotiation services. This will ultimately result in more time constraints that are not necessarily filled due to the limited number of potential employees the company is able to hire.
The Alternatives:
A lawyer based consolidation is the same service that negotiation debt relief companies provide. A debt relief company that works through creditor negotiation is able to provide similar relief via reduced interest or a settlement that averages 50 percent of the original debt.
The benefit of working with a debt relief company that is not lawyer based is obvious. The cost is lower, the services are similar and the time before professionals start the negotiation process is often much faster. The company is able to ensure that a professional in negotiation is working on your case within a short period of time.
A legitimate and professional debt relief service will charge only after rendering services. This means that instead of paying high maintenance charges beforehand, the costs are only added after reductions in payments occur or the account is fully settled.
The alternatives to lawyer based services are the professional debt relief companies that work via negotiation. This type of professional service provides the same benefits as working with a lawyer without issuing the same downfalls. If you are struggling with debts, a lower cost service is usually the best solution.
A lawyer based debt consolidation service is a form of negotiation to reduce interest and settle the account. It does not provide added services when compared to non-lawyer based alternatives, so it is usually not appropriate for many consumer needs. To learn more about debt consolidation and settlement options, call us today or fill out our free debt analysis form.