Are you swimming in debt and can’t get ahead, no matter how hard you try? Are you forced to pay bills and charge essential items on credit cards, thereby adding to the interest you’re paying and steadily increasing your monthly “nut”? If you find yourself in this predicament, you are not alone. Many consumers find relief from overwhelming debt situations through debt settlement.
Debt settlement involves negotiating with your creditors to accept a significantly reduced balance as payment in full. If you opt for this method of debt relief, you could try to negotiate with your creditors on your own. However, most people do not have the skills needed to obtain the greatest reductions, and some creditors do not negotiate directly with debtors.
Our experienced Pasadena debt settlement attorneys with the DCDM Law Group will work hard to negotiate with your creditors for a balance you can actually afford to pay. You could potentially save a great deal of money by working with a debt settlement lawyer who has the knowledge and experience to negotiate skillfully with your creditors. Many debts can be settled for mere pennies on the dollar.
Why Would a Creditor Agree to Accept a Reduced Payment?
Many creditors are willing to accept a reduced payment because something is better than nothing. With unsecured debts particularly, creditors know that if your debts become so overwhelming that you are forced to file Chapter 7 bankruptcy, they will receive little or nothing on the balance owed. It is often in their best interests to agree to a settlement.
Examples of the types of unsecured debt that are eligible for debt settlement in Pasadena through negotiations with your lawyer include:
- Credit cards balances
- Medical bills
- Hospital bills
- Credit union loans
- Personal lines of credit (unsecured)
- Auto repossession balances
Advantages and Challenges of Debt Settlement in Pasadena
Debt settlement has several advantages to consumers. The total amount you owe can be substantially reduced. Your debts get paid in one lump sum payment, and you no longer have these obligations hanging over your head. Your monthly budgeting becomes considerably easier when a significant portion of your bills are eliminated. You also have the advantage of avoiding the need to file for bankruptcy protection.
It is necessary to come up with a lump sum payment for most debt settlements, and that may require saving, borrowing, or selling an asset. A debt settlement will, over time, change your credit rating, as your debt to asset ratio has improved. Filing bankruptcy has a long term impact on your credit rating, which is avoided through a settlement.
Debt Settlement Lawyer in Pasadena
Our debt settlement attorneys at DCDM Law Group are in your corner, and we will fight to get your creditors to agree to substantially lower payoffs. Our lawyers have been named Pasadena Top Attorney and awarded 10.0 Superb Rating on Avvo. We have helped countless California people get out from under staggering levels of debt. No matter how serious your situation, we can help.
Our dedicated team is friendly and approachable. We love what we do, and we put our clients first. Contact us today to schedule a free consultation and to learn more about our debt settlement services. Take action now to start turning your financial situation around!