Should I Hire an Attorney for Debt Settlement?

Americans are carrying more debt than ever due to economic issues and others. Fortunately, when credit cards and other debts are out of control, a few options help you before filing for bankruptcy, and debt settlement is one of those. Debt settlement is a negotiating agreement. After negotiation, the creditor accepts less than the total amount. Debt settlement is a difficult process that requires plenty of paperwork. Both debt settlement companies and an attorney assist you in negotiating with the creditor. In almost all cases, it is better to hire a debt settlement company instead of an attorney.

Debt settlement attorney:

Debt settlement attorneys directly work with creditors and lenders to settle your unsecured debt. However, they provide various services depending on the tactics, skill set, and experience level. They will design a payment plan that suits your budget. It will also increase the likelihood of meeting your debt goals. An experienced debt settlement attorney can provide legal advice regarding your situation. They also help you avoid wage garnishment. The biggest negative is hiring a debt settlement attorney. They will not represent you for free. However, the fee of a debt settlement attorney could be based on the following:

  • A percentage of the settlement amount for every single account.
  • When your debt is settled, a percentage of the amount you save.
  • A flat fee is determined by the number of lenders and creditors you have. 

Some debt settlement attorneys also charge by the hour. It can make legal fees instantly very expensive and make debt savings disappear. Furthermore, when the economy is in bad shape, every debt settlement attorney gets very busy quickly. People suddenly find themselves in deep trouble after losing their jobs. So, if you are one of those, you must prepare for your legal matter to take some time. It is because your attorney will be juggling several cases.

Debt settlement company:

Debt settlement companies have professionals. They provide repayment assistance to people overburdened in debt. They help in debt settlement so you can clear your outstanding debts painlessly. They provide professional support to individuals and help with debt settlement issues. Whether you have student loans, credit card debt, or other financial obligations, these professionals can guide you through the process of debt settlement, including Navient settlement if you have loans serviced by Navient.

So, finding yourself in an avalanche of debt causes confusion, stress, and predicaments. The debt settlement company negotiates with creditors to secure a waiver and streamline payment. These companies have reputable financial professionals reorganizing your debts and adjusting them to make it easier for you to meet your financial obligations. Therefore, hiring a debt settlement company is the best thing you can do if you find yourself in a vicious cycle of debt. They not only negotiate to have debt lowered, but if there are late payment fees and accumulated penalties, they also negotiate with a creditor to waive such fees. In this way, you have to pay the principal amount. Additionally, they can also negotiate to have a high-interest rate lowered.


A debt settlement company not only helps to save time but also lots of money. They can shorten the period of paying the debt compared to debt settlement attorneys. A good debt settlement company consists of financial experts who will counsel and advise you on how you can manage your finances in the future. It will help you lead a debt-free life in the future. Instead, when you work with a debt settlement attorney, you will receive a call from your creditor. So, they can easily harass you as they demand payment. Such actions cause anxiety and stress. Hiring a Debt Settlement Company reduces your stress. It is because they will receive your creditor’s calls on your behalf. They will answer all the queries related to your debt. So you can lead a stress-free life.