If you are overwhelmed with debt, you’re in the same boat as hundreds of thousands of Florida residents. Today’s challenging economy and unexpected expenses like hospital bills or surprise car repairs put many families in debt. Debt settlement may be a way for you to have your debt reduced so you can get on the path to financial freedom.
Debt Settlement Defined
Essentially, debt settlement is when you negotiate a lower payment with a creditor in exchange for payment in full, as opposed to being put on a monthly payment plan. For example, if you owe a hospital bill for $600, a creditor may accept $400 instead if you pay it all in one lump sum.
Why Do Creditors Settle Debt?
It may sound counter intuitive for creditors to settle debt, but it’s important to remember that collection activity costs money. If you are on a monthly payment plan and end up paying the entire $600, the creditor may end up spending $300 over the course of your repayment period by sending you monthly statements, making phone calls, and otherwise attempting to collect your debt. However, if you settle for $400 and pay in full, the creditor may have only spent $50 in collection costs, therefore they end up with a larger profit. Additionally, creditors are often willing to settle because it eliminates the possibility of debtors defaulting on their payment plan and closes out the account.
Can I Settle My Debt Myself?
Although it is possible to negotiate a satisfactory debt settlement on your own, creditors are less responsive to debtors trying to settle their own debts than they are to attorneys who are working for the debtors. Attorneys are also more familiar with Florida debt collection laws in general. A skilled negotiator may be able to get you a lower settlement offer than you would have been able to achieve on your own.
Contact Lehn Law, P.A. Today
If you’re struggling to pay down debts, don’t hesitate to reach out to an experienced debt settlement lawyer to learn more about what your legal options are. You may be able to settle your debt for much less than you owe, giving you the opportunity to start fresh without significant debt hanging over your head. Call Lehn Law, P.A. today for a consultation to discuss your debts in detail and find out what we can do for you. Call now at (941) 255-5346.