Ways To Get a Personal Debt Settled

If you are looking for ways to get a personal debt settled, you have a few options. You can consult with a debt settlement company, you can hire a debt settlement attorney, or you can try to settle the debt yourself. There are pros and cons to each of the different ways to get a personal debt settled, so it is important you evaluate your options carefully.

Settling Debt

Settling debt involves paying less than what you owe. The easiest type of debt to settle is unsecured debt, such as credit card debt. Tax debt and student loan debt can occasionally be consolidated but it is much more difficult to do so. Mortgage debt can be settled in the form of a short sale, but again, the process is very different to settle mortgage debt than to settle credit card debt. While all of these different forms of debt are technically personal debt, when most people ask about ways to get a personal debt settled, they are referring to credit card debts.

Each of the three main ways to get a debt settled have some benefits and detriments to consider. For example:

You can try to settle debt yourself by negotiating with the credit card companies. However, unless you have a clear understanding of the law and are a good negotiator, the credit card company may not take you as seriously as a professional and may not be as willing to negotiate with you
You can settle debt with the help of a debt settlement company. This can be a good option since a debt settlement company may have a relationship with the credit card companies. However, some debt settlement companies are unscrupulous or promise things they cannot deliver and they charge high fees. As such, you need to be very careful in researching the company you choose and you need to understand exactly what you will be charged and what process they will use to settle your debt.
You can work with a debt settlement attorney who can help you to settle your debt. Working with an attorney ensures you get a qualified and honest advocate, since attorneys must pass the Bar exam and must adhere to a code of ethics. The downside is some attorneys may charge a relatively high hourly fee, however, the benefit of their expertise and their ethical and honest support of you as a client can often more than make up for that fee.

Getting Help

After reviewing the ways to get a personal debt settlement, if you opt to hire an attorney, there are likely plenty of qualified lawyers in your area who are willing to help. Ask your attorney about his experience with debt settlement and about what your options are for settling your personal debt for less.

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