The advertisements claim that you can settle your debts for far less than you owe. While that notion may in some ways be true, you might be in for a very bumpy ride if you think that one of these nationally advertised debt settlement companies can actually help you. They can sure seem helpful, until you pay them.
They claim that they have lawyers working hard on their side to settle your debts. In all actuality, most lawyers at debt settlement companies have almost zero involvement in your case. Instead, they are busy trying to find loopholes in federal law and state regulations to keep their doors open.
An actual attorney that you hire to help you settle your debts could be beneficial, if you hired the lawyer directly. Of course, understand that you will have to save far more just to justify the hefty fees that you pay. Remember that lawyers are not cheap!
You might do just as well trying to settle your own debts using commonly available templates and sample letters found on the internet. Many of these are written by attorneys. Some can be as simple as just filling in the blanks, printing and then mailing your signed letter.
Responding to a national debt settlement company commercial means that you are becoming just a number to them. For the thousands of dollars in fees that you will have to pay, all they do is sit on your money, collecting your interest and waiting to send the same type of form letter that you could have sent on your own for free.
At some point, you will realize that you may have made a mistake in hiring one of those companies. Good luck trying to get a refund or even getting a return phone call. The most valued employees at debt settlement companies are the high-pressure sales agents that convince you to hire them and keep you sending your money in even when you are not getting the promised results.
It sure does make you feel good to have a lawyer on your side to help you get a better deal. Yet understand that hiring a debt settlement company does not automatically mean you are represented by an attorney. Most debt settlement contracts explicitly state that you will not be represented by one of their attorneys, and should you face legal action, you will need to hire your own legal counsel should you require representation. It begs the question, what is it are you paying for again?
The most common arrangement for lawyers and debt settlement companies is a near 100% hands-off arrangement. Known as the rent-a-lawyer scheme, debt settlement companies are able to avoid consumer protection laws that ban upfront payments for debt settlement services by claiming that they are exempt based on their being a law firm. The trouble is that there is no actual attorney involvement. The debt settlement company simply pays the law firm a licensing fee for the right to use their name in commerce. These arrangements are not legal loopholes to the upfront fee ban, but federal and state regulators often take years to discover, investigate and finally shut down these scams.
Once this happens, your money is long gone. Your debts however are still there. Can you trust a debt settlement lawyer? The odds are so stacked against you that it would be almost miraculous for you to have a good experience. Instead, think of what you could do with that $5k you were going to pay in fees. It just might pay a couple of your debts off.
Before trying to settle on your debts, make sure that you understand the various benefits and drawbacks to debt settlement. It might be a workable solution for you, but it is by no means an easy way out of debt.
