Having too much debt in today’s economy can be a severe struggle. With increasing living costs, credit card debt can make it challenging to pay everyday expenses. Even if you want to pay off your debt, the interest rates are so high that you need to pay double or even triple the payments to get out of debt quickly. So what can you do in this type of situation? Have you ever considered getting your debt or at least some of it forgiven by an attorney? If so, you’re probably wondering how it works and what it costs.
While there are different methods to get your debt or a part of it waived off, the safest and least complex is through a debt settlement. You can settle your debt through a for-profit company or a non-profit organization. However, these approaches can seriously dent your credit score and even result in heavy fees, especially for for-profit debt settlement companies or, worse, a lawsuit from your creditor!
This is why the best way to settle your debt is to negotiate with your creditor directly, and having an attorney represent you can be of major help! A debt settlement attorney can handle all aspects of your debt settlement (including a lawsuit and negotiating your balance). Ultimately, your debt is settled, and you can pay off your creditors for 2 to 4 years.! But how much does a debt settlement lawyer cost, and does it make sense to hire a costly negotiator, or is it better to settle the debt on your own?
What is Debt Settlement, And How Does it Work With An Attorney?
Debt settlement involves getting your debt or a part of it forgiven or reduced by your creditor. The creditor accepts that you paid your debt in full even if you have paid less than what you owe. Most debt is settled in debt settlement and not eliminated, and creditors often settle for 40% to 80% of the original balance. The amount that is waived off is termed the debt settlement amount. For example, if you owed a creditor (a bank, an organization, or a company) $15,000 and you settled by paying $12,000, $3,000 is the settled amount.
Debt Settlement Though An Attorney
There are multiple ways to settle your debt, which have benefits and drawbacks. You can utilize the services of a for-profit debt settlement company that will settle your debt with your creditors. However, the settlement company will need you to set aside money each month until there’s enough money accumulated to settle the debt. Besides that, they charge fees to settle your debt, and it may be better to settle the debt on your own if you feel comfortable speaking to your creditors. Another option is to get a nonprofit credit counseling company to reduce your interest rates. Such an organization will not charge any fee; however, your credit will be hit if you fall behind on the monthly payments.
Another method to reach debt settlement is reaching out to your creditor directly. However, there can be various reasons why your lender may not want to settle your debt if you’re still making the monthly payments on time. This is why it is better to hire a debt settlement lawyer as your representative and let them negotiate the terms with your creditor.
How Much Does a Debt Settlement Lawyer Cost?
How much a debt settlement lawyer will cost varies significantly and depends on multiple factors. It can depend on the type and amount of debt you have, your current financial situation, the extent of work the lawyer will have to do, and how difficult it will be to settle your debts. If your creditor has decided to file a lawsuit against you, the lawyer will also charge extra fees to deal with the creditor and potentially defend you in court.
Common Debt Settlement Lawyer Fee Structures
Debt settlement lawyers can have different fee structures based on their preferences. You can also ask them for a favored fee structure from the most commonly followed ones.
Fee Per Debt – A debt settlement lawyer can charge a flat fee based on the number of debts they need to settle
Hourly Rate – Most debt settlement lawyers have an hourly rate, which is charged per hour they spend on your case. This option may be best for someone who wants their debt settled and doesn’t need someone to communicate with their creditors daily. Commonly, the rates range from $120 to $350.
Fee Based on the Debt – The lawyer can also set a percentage fee based on the debt you owe your creditors.
Fee Based on the Debt Settlement Amount – Some attorneys can also charge a percentage fee based on the amount you will save through the debt settlement.
Debt Settlement Attorneys – Final Thoughts On The Cost
A debt settlement lawyer can charge variedly based on the debtor’s circumstances. For example, the type and amount of the debt, their legal standing, amount of work, and chances of getting the settlement can affect how much a debt settlement attorney will cost. Additionally, debt settlement lawyers can utilize different fee structures, as mentioned above, so make sure you go through them. Contact Gateway Debt Relief at 888-560-0132 to learn more about our innovative debt relief strategies. Are you already in a debt settlement program with an attorney? We’ll let you know if you’re paying too much!