If you’re considering credit card debt settlement, you’ve probably
heard competing opinions about it: whether it’s effective, how much
of our debt you can avoid paying, if you need a lawyer, etc. These are
legitimate concerns, and it’s important to stay informed before
pursuing negotiations with creditors.
Myth #1 – It’s easy to get your debts cut in half through debt
With the help of an attorney, you can reach an agreement for significantly
less money that you owe. However, this doesn’t mean the process
is easy. Working with a professional, such as a debt settlement attorney,
can increase your chances of getting the best results.
Myth #2 – I should negotiate alone because I can’t afford a
When it comes to negotiating with creditors, the benefits of hiring a debt
negotiations attorney far outweigh the cost of working with one. Without
a lawyer, creditors may not take your negations seriously, whereas a seasoned
legal professional can help you get a better settlement.
Myth #3 – I should hire a debt settlement company vs debt settlement
law firm because they are less expensive.
To the contrary, many debt settlement companies charge a straight percentage
of the total outstanding debt, which often results in higher fees than
what a law firm would charge. Moreover, their fees are almost always front
loaded, which means that you pay significant fees before they even settle
the first credit card account. With Wadhwani & Shanfeld, you pay a
settlement fee only upon settlement of an account.
Myth #4 – Debt settlement isn’t right for me because it will
damage my credit.
Debt settlement will affect your credit score, but you can recover, just
like debtors recover from bankruptcy. Debt settlement generally stays
on your report for 7 years; bankruptcy will remain visible for 10. Visit
our “3 Ways to Rebuild Your Credit after Bankruptcy” to learn more about establishing good credit after a financial setback.
Myth #5 – Debt settlement is always a bad idea.
Debt negotiations aren’t right for everyone, but this doesn’t
mean it isn’t a smart financial move for you. Talk to a Sherman
Oaks debt settlement attorney from Wadhwani & Shanfeld to learn more
about your financial options with us. Take the first step toward a secure
schedule a free consultation with our team today.