Top 7 FAQs on Debt Settlement
When you are overburdened with loans and credit card bills, you may search for debt consolidation or settlement. The law varies from one state to another pertaining to debt, so you need to consult debt consolidation attorneys in OKC to follow the right method to deal with the situation. Here are some FAQs that may come to your mind before opting for debt settlement.
1. How does debt settlement work?
In debt settlement, negotiating with the creditors helps reduce the outstanding debts. It is a proven policy for people who are deeply in need. On the other hand, it is also considered a “lose the least” policy for the creditors as well.
2. What is the difference between debt consolidation and settlement?
There is a thin line of difference between debt consolidation and debt settlement. The former defines that the debt is to be paid with a much lower rate of interest, but the latter reduces the unpaid debt, so it is a way to pay off much less than the principal amount.
3. What is the possible span for debt settlement?
The time debt settlement takes is dependent on many factors. You can call up the debt consolidation attorneys in OKC to handle your case, but the time to settle the entire matter depends on a few things. Those include how much money you owe, the policy of the creditors, how long you have had this outstanding debt and your financial goals.
4. Can it affect the credit score?
Unlike debt consolidation, debt settlement can affect your credit score. If you are in debt, your credit score will be negatively affected. The debt consolidation attorneys in OKC can handle the situation, but you may have to put in some extra effort and go through a financial management course to avoid such situations in the future.
5. Can the debtor negotiate?
Yes, you may help yourself and negotiate the amount with the creditors, but hiring debt consolidation attorneys in OKC is a better idea. They know the law better than most people, and they know how to pitch for the negotiation.
6. Can I use credit cards again?
The creditors you have made the settlement with will not provide you with the facility to use their credit card again. You can use other cards, but be aware of your experience with the debt settlement. A financial management course will help you understand how to control your finances.
7. What is the cost of debt settlement?
The cost may vary from place to place and according to the complexity of the case. In many cases, the debt consolidation attorneys in OKC handling the settlement cases don’t charge anything directly from the debtor, but they claim a percentage of the saved money. The firms that provide the service of debt settlement charge fees according to the industry standard, but it may vary if the case is more complex.
Chris Mudd is one such firm where you can get a professional attorney for your case, and your investment will be worth it. Contact us to learn about the fee structure and policy and to get the best service.
** Disclaimer: This blog post does not constitute legal advice, nor does it create a client-attorney relationship.