Consumers who buy on credit often pay far more than the original price of the items purchased, after the added costs of interest, fees, and any late charges are tacked onto the balance. Certain card companies state directly on their bills how long it would take a debtor to pay off a balance making minimum monthly payments, and depending on the interest rate, it could take more than 15 years to pay off $2,000. Fortunately, when debts mount up and become impossible to manage, Los Angeles consumers have the option to significantly reduce the amount they owe through negotiation and debt settlement.
How Much Can Debt Settlement Save Los Angeles Consumers?
Settlement is a debt relief option that can significantly reduce the amount you owe, particularly when you have an experienced debt settlement attorney to negotiate skillfully and aggressively on your behalf. According to an article on Investopedia, consumers with knowledge and courage in their corner may be able to reduce their balances by up to 70%.
At DCDM Law Group, our Los Angeles debt settlement lawyers will fight to protect your rights as a consumer, and push your creditors to agree to substantially lower payoffs. We strive to get your balance reduced to a manageable amount you can actually afford to pay.
How Does Debt Settlement Work?
In the debt settlement process, the consumer offers a lump sum, one-time payment of a portion of the balance in exchange for the remaining debt. For example, a consumer with a $20,000 credit card balance may offer the card company $10,000, or less, in one lump sum as payment in full on the account.
The credit card company may accept the offer, in order to obtain the immediate cash, particularly if the creditor lacks confidence in the consumer’s ability to pay the entire balance. In either case, the credit card company’s sole purpose is to protect its own bottom line, which is a major factor that comes into play when negotiating the terms in debt settlement.
Credit card debts are unsecured loans, without collateral for the lender to seize in case of nonpayment. If you are significantly behind on your payments and your lender suspects that personal bankruptcy is a real possibility, you may find the lender willing to accept a settlement offer that saves you thousands.
Get Legal Help for Debt Settlement in Los Angeles
Although debt settlement can provide consumers with significant debt relief, there are some disadvantages to consider before you decide to pursue this option:
- You must be able to come up with a substantial lump sum for the payoff.
- The settlement may impact your credit score.
If you are considering debt settlement in Los Angeles, contact DCDM Law Group for a free consultation before you make your decision. We have been helping California people find the right solutions to their legal and financial problems for more than 12 years. Our experienced debt settlement lawyers can explain your debt relief options, along with the pros and cons, and tell you how our firm can help.
- Investopedia: A Guide to Debt Settlement