Question: Do I need a debt settlement attorney? My medical bills are staggering and I can’t afford to pay them all, what should I do?
Answer: There are times when an attorney is needed in order to resolve debt problems. However, most of the time attorney costs can be avoided.
A debt settlement attorney will typically be highly compensated so you’ll want to be very careful as to when you hire one to intervene on your behalf.
"One way to solve the traffic problems of this country
is to pass a law that only paid-for cars
be allowed to use the highways.”
- Will Rogers |
Likewise, debt settlement is very different from debt consolidation or debt counseling and you should learn the difference between these terms so you know what you need and what to ask for.
One of the big reasons people suddenly find themselves drowning in debt is due to massive unexpected medical bills.
For people who lack sufficient medical insurance or simply have no medical insurance at all, a sudden illness or injury can turn their financial life upside down. Before you allow the stress and anxiety to get the best of you, be sure to remember the more important things in life.
Family, and relationships will get you through the storm. Things and money will come and go.
While hospitals are very willing to work with you on your medical debt, many creditors such as credit card and mortgage companies are not as forgiving (these days one late payment can send your interest rate sky high).
The medical industry is by far the most understanding and easiest establishment you may ever work with. However, most savvy creditors would rather work out a deal where they’ll eventually get all their money back, rather than suing you knowing they will be lucky to receive half of the balance owing.
Being mired in debt is not necessarily a reason to hire a debt settlement attorney. Instead, you should first contact your creditors one by one and request to speak with their billing department.
Most likely each creditor already has written plans in place for how they intend to handle those who come to them stating an inability to pay them back according to the initial terms of the agreement.
They may be willing to discount some of the balance if you agree to pay the remaining balance in full, or they may be willing to renegotiate terms of the account – either lowering the interest rate, or lengthening the term of the note.
A debt settlement attorney should be considered a last resort. They are often used when a person has no other choice but to file for bankruptcy.
However, even bankruptcy is not an easy way out of debt as it does not completely erase your debt and leaves a detrimental mark on your credit report for as long as ten years.
Contact your creditors pro-actively. The more effectively you communication with them, the more it is that they will be willing to work out a deal that is agreeable to both parties.
"Who recalls when folks got along without something
if it cost too much?”
- Kin Hubbard |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
