Debt Settlement in New Hampshire
Examining Your Debt Relief Options
In the face of overwhelming debt, whatever you do, you want to take action.
The long-term ramifications of unpaid debt are extensive, but by educating
yourself and planning, you can get back on track to creating a financial
future that is much brighter. If you are considering debt settlement and
other debt relief options, I encourage you to contact me at Bryan W. Clickner,
Attorney at Law, PLLC for help!
nearly 20 years of experience as a New Hampshire bankruptcy lawyer, and a passion for helping people
become debt free, you can turn to my law firm for the legal guidance and
support you need. In a free consultation, I can review your situation
and advise you on which options I would recommend to turn your situation
around for the better once and for all.
What is debt settlement?
It is not uncommon for debtors to become so saddled with credit card debt
or medical bills that they cannot recover. Debtors who have access to
cash can arrange a debt settlement agreement with the credit card company;
however, they should know that it can negatively affect their credit score
and their ability to obtain credit in the future.
With a debt settlement agreement, the debtor makes an offer to a company
to accept less than what is owed as a full and final payment of the debt.
Although an accepted offer prevents the lender from selling the debt to
a collector, it may leave a black mark on the debtor's financial history
for seven years.
By the time a debtor considers debt settlement, their credit rating has
already taken a beating from having multiple late payments for 30, 60,
or 90 days. These late payments not only drop a credit score by up to
200 points, but a debt settlement arrangement shows a "paid"
not a "paid as agreed" on a credit report, leaving another black
mark on a credit report.
While paying the full amount owed would harm one's credit score less,
it does not remove any previous late payments that will show on the credit
report for seven years.
Contact a Manchester bankruptcy attorney!
If you have access to cash and believe that debt settlement is a good option,
I recommend offering less than what you can afford to pay, typically around
25% of your debt is a good place to start. It is important not to be rushed
and to never act to eager to settle.
You should not accept the first or second settlement offer, and never let
the debt collection agency think that they have the upper hand. Most importantly,
do not send anything until you have the agreement in writing.
To learn more about all of your debt relief options, please
contact my firm today!