Can I settle my debt with multiple creditors?

Question

Can I settle my debt with multiple creditors?

Answer

Yes, of course you may. There are many Debt Negotiating companies out there which advertise and claim they can settle debts with multiple creditors into one lump sum. These companies are often known to use illegitimate practices and deceptive methods. Basically, they open up an account and estimate how much the settlement amount can be (usually 40-60% of your original debt), and ask you to deposit monthly payments into an escrow. As the payments accumulate, they will negotiate and settle debts with the creditors as they see fit. However, these companies charge premiums on top of the debt collection agencies and there is no guarantee your debts will be settled. There are many state General Attorneys taking legal action debt negotiating companies.

The best way to settle debts with multiple creditors is to contact each individually before the condition of the debt gets worst and negotiate a repayment plan directly with them. This will show the creditor you are proactive and making an effort to resolve the debt rather than completely ignoring it and letting it as unfortunately hundreds of thousands of people do. They will want to avoid sending your debt to collections and work with you directly. A debt settlement attorney can be a good option in tactfully negotiating a settlement with your creditor as well.

Talk to a Debt Settlement Attorney for a free consultation to find out what options you have to settle your debt and avoid legal issues like creditor lawsuits and judgements.

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