Though most of us strive to live a debt-free life, it’s getting tougher and tougher these days to remain afloat. Millions of Americans struggle with outstanding- or delinquent- debt every day. There are just things in life you can’t prepare for, like medical emergencies and unemployment. When facing large amounts of debt, it is natural to feel as if you have limited options. During these times, it is important to remain cool and collected, as there are a few avenues through which to reduce your debt or eliminate your debt, one of which is debt negotiation.

PROFESSIONAL DEBT RELIEF

There are various professional services you can find to handle your debt, the most common of which include debt consolidation and debt settlement. Debt consolidation is when you take out a loan to consolidate and pay off all your other debts. The purpose of this type of solution is to reduce interest debts and combine several debts into one manageable monthly payment.

Debt negotiation, also known as debt settlement or credit settlement, is a different approach to debt reduction. In this case, the debtor and creditor both agree on a reduced balance that is to be regarded as payment in full. The debt is “negotiated” in exchange for a lump sum payment. During the negotiation period, the payments you make as the debtor are made to the settlement company, rather than the creditors. The settlement company typically withholds payments to the creditors.

THE DOWNFALLS OF DEBT NEGOTIATION

At first, debt negotiation may seem like a good way to be rid of your debt since it allows the debtor to pay less than what he or she owes. If this sounds questionable to you, your instinct is correct. There are severe consequences to debt negotiation, such as ruining your credit score. In addition, debt negotiation leads to high fees and taxes that must be paid as a result of the settlement. These can offset what you thought you were saving by cutting the original debt amount.

Debt negotiation companies can be as predatory as debt collectors because they too can profit off of your unpaid debts. Be wary of any company that promises your debts can be paid off, or do any of the following things:

– Charges fees before it settles your debt

– Guarantees it can make your debt disappear

– Guarantees it can stop debt collection calls or lawsuits

– Demands that you quit communicating with the creditors

– Unveils a “new government program” to bail out credit card debt

If you fall victim to any of these marauding schemes, you deserve an aggressive lawyer who will fight for your rights. Contact (844)-JIBRAEL today to discuss solutions to your debt-induced nightmare.

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