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Benefits of Debt Consultant vs. Debt Settlement Attorney

When you get to the point where there is no other option than to seek a debt consultant, you will undoubtedly come across various options for doing so. Along with finding reputable companies like Liberty Debt Relief, you will also be introduced to the option of getting a debt settlement attorney. Attorneys can help with a lot of legal issues and specialties, but even though they are experts in the field of laws and regulations, getting out of debt may not be the best use of their knowledge.

Lawyers Focus on Legal Strategies, not Debt Settlement Plans

The only way to get out of debt — and prevent falling back into it in the future — is by getting advice and strategies from a debt specialist. Unlike lawyers, even those who focus on financial and debt law, this kind of expert can help you address the root of the problem, which is likely your high monthly payments and interest rates. Most of the time, lawyers may only specialize in bankruptcy as well. Unless you have already filed for bankruptcy or are about to, a lawyer will not be able to effectively help you get a hold of your finances for the long-term.

They will not have enough knowledge or experience working on settling with companies before they sue, nor will they be able to provide any real strategies on managing your budget. During your meetings and court hearings, the lawyer will be doing whatever they can to make the immediate issue go away. A debt consultant, however, understands that debt settlement negotiations take time and there is no quick-and-easy way out of financial stress.

The Expenses Will Likely Outweigh the Benefits

It is no secret that a debt settlement attorney is an expensive cost to take on. Most attorneys charge people by the hour and, when you are dealing with something as extensive as getting out of debt, you have to dedicate hundreds of hours to truly take control of the situation. Since many of these attorneys only focus on bankruptcy and complicated, last-ditch-efforts for debt relief, those hours of planning out a financial strategy can easily turn into days, weeks, and even months, and before you know it, you could accrue thousands or hundreds of thousands of dollars in legal fees.

When you have no choice but to file for bankruptcy, there is really no wiggle room in your budget to pay that kind of money, especially when you will be forced to pay a large retainer fee up front before you even get the financial assistance you need. Using a debt consultant instead will cost you far less, both in the short and the long-term.

Any accredited debt relief company will not charge an upfront fee and will only make you pay a small percentage of the money you end up settling. Additionally, unlike lawyers who will charge you their hourly rates and other fees, no matter the outcome, if a settlement is not reached with a debt relief company, you do not have to pay them for their service. Debt settlement companies are focused on getting you terms and dollar amounts you can handle the first time and will do everything in their power to make sure you do not go into more debt just to get out of debt.

There is No Sole Focus

Lawyers are known for working a crazy amount of hours and taking on dozens of cases at a time. Handling a lot of different cases at once can cause some lawyers to forget information, confuse numbers, or even fall behind on scheduling negotiations and conversations with debt collectors. For something as life-changing and crucial as getting out of debt, there is hardly time to deal with mismanagement.

Getting help from a certified debt settlement specialist ensures that your case is looked at with the most concentrated care as possible. Certified debt relief companies know how important getting personalized attention is when looking to settle debt. This is why they make various specialists available so no consumer has to worry about getting lost in the daily shuffle. As soon as you decide to work with a debt settlement company like Liberty Debt Relief, you will be appointed to one person who will work diligently to get you out of debt as soon as possible and who is willing to work with you as much as you need, whenever you need.

Make the Choice That’s Right for Your Financial Future

At the end of the day, you need to make the best choices for your situation to secure a future of positive and healthy financial situations. Debt settlement attorneys do a great job of handling legal issues, but by taking control of your situation sooner rather than later, you can avoid thousands of dollars in legal fees, days spent back and forth in courtrooms and law offices, and can develop a strategy that helps you get out of debt now while making a plan to stay out of debt in the future. Attorneys are usually not needed to get out of debt and, by doing research and discussing your options with a credible debt settlement specialist, you can start your journey into financial success in just a few hours.

Contact Liberty Debt Relief today to find out how you can avoid bankruptcy and costly lawyer fees and start getting on track to settle your debts.

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Settlement vs Management: The Best Debt Solutions for You

Everyone has different kinds of debt they have accrued over the years, which means everyone needs a debt solution that caters to their particular situation. When it comes to deciding between various relief options, the answer depends on many factors. Luckily, Liberty Debt Relief has experience working with individuals in all kinds of financial situations, and we have found certain debt relief strategies may be more appropriate for certain people.

Debt Management vs Debt Settlement

In most debt settlement programs, a debt settlement consultant will negotiate with your lenders to settle for a lower amount — usually between 30 and 50 percent less than your original outstanding balance. Debt management plans, on the other hand, combine various debts from different lenders into a single balance with a lower interest rate that you then work to pay off over time. You will not necessarily have a significantly lower amount that you owe per account, but you will save hundreds or even thousands of dollars in interest as you pay the borrowed amount back.

If You Have Mostly Credit Card Debt

Creating a debt management plan may be one of the best debt relief strategies you can choose if you are primarily dealing with credit card debt or other forms of unsecured debt, such as medical expenses. Credit cards tend to have slightly higher interest rates and are usually easier to manage in longer-term repayment plans. While you will not be able to continue using your credit cards during the repayment period, you will be able to combine all of your credit card balances into one with a significantly lower interest rate, which can save you a lot of money over time. If you get some help from an experienced debt solution expert, they will also work to get any fees associated with the debts waived.

Of course, if you choose to settle your credit card debt instead, you could end up saving tons of money! There is a chance your debt consultant could negotiate certain accounts so you end up paying less than you currently owe, which is not something management programs can do for you.

If You Have Delinquent Debt

Delinquent debt is a major issue that can have severe, long-lasting impacts if solutions are not established as soon as possible by you and your lender. If you have not paid anything towards your balances in at least six months and have made no efforts to fix the situation with your creditor, then you will receive this delinquent status, which can result in severe negative impacts on you and your co-signers’ credit profiles. For those who have ended up in this situation, the best thing to do is to seek out a settlement option, as you are likely too far in the financial hole to establish a debt management plan with your lender you will be able to afford.

By choosing settlement as your debt solution, your lenders and your consultant will discuss what you can actually afford to pay without risking more delinquent charges, so that you can pay back the balance as soon as possible. In fact, this may provide some leverage during negotiations because creditors will be happy to collect a lesser amount rather than nothing.

If You Don’t Qualify for Debt Consolidation

Some people will not qualify for debt consolidation because they do not have the credit score or income necessary to secure a new consolidation loan that will lower their other debts. With debt management, that problem could be eliminated.

Once you set up a debt management plan, you will still be able to make monthly payments towards your outstanding balances. The payments will automatically be deducted from your bank account every month and late fees will be waived so that you are able to stay on top of your debt and save some money in the process.

Again, debt settlement may also be an option for those who don’t qualify. In fact, this debt solution is the most affordable because you are not required to take out yet another loan. You do pay fees to the debt settlement company for their services, but these are only charged after the services are complete. You should never be charged upfront by a debt settlement company.

If You Are on the Brink of Filing for Bankruptcy

Bankruptcy should always be a last resort, but if it comes to the point where you are strongly considering filing for it, it is far better to choose debt settlement vs debt management as part of your financial strategy. If you go through with filing for bankruptcy, not only will you take a hit for finances, so will your lenders. They will not get the money you owe them, which is why they want to do everything they can to make sure they get paid as soon as possible.

Instead of filing for bankruptcy as soon as you get the chance, talk to your creditors about your situation. They will more than likely negotiate a significantly smaller debt amount that you will actually be able to pay. If you are able to settle to an amount that better works for you, you may even be able to forego bankruptcy altogether, saving your credit and your assets.

Talk to a Specialist to Find the Optimal Debt Solution

Debt relief strategies come in all shapes and sizes to fit every person’s individual needs. To better understand whether debt settlement or debt management is better for you, the best thing to do is speak to a debt relief consultant. They will sit down with you one on one to look over your budget, analyze how much debt you need to pay, and point you in the right direction of the solution that will get you out of debt as soon as possible.

Contact Liberty Debt Relief and meet with your personal debt relief consultant today.

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What Creditors Expect After a Debt Settlement Negotiation

The process of negotiating with creditors takes a lot of your time, energy, and patience. While it is important that you understand the process of getting into and eventually settling your debt negotiation, it is equally important that you understand what happens after that agreement is reached. Settling your debt with a financial lender is an official agreement that both parties are meant to uphold, so by understanding what creditors fully expect, you can be well prepared for what is to come after the conversation is over and the payments are due.

Make the Agreed Upon Payments

Upon reaching an agreement with your creditors, you will either pay off your settled debt in a lump sum up front or will agree to monthly payments for a specific amount of time. The decision on how you’ll make payments is based upon your current income, history with the lender, and budget. As such, the creditor you are working with will fully expect that you are able to fulfill your financial obligation.

It is important to remember that debt negotiation ends in legal contracts. As soon as you agree to how you will settle your debt, you are obligated to uphold your end of the bargain. If you signed up for monthly payments, failing to make them on time or missing a payment altogether can give your creditor permission to break the remainder of the contract. When this happens, you could rack up on additional fees and other repercussions that could cause more harm to your financial future.

Do Not Continue Using the Credit Line

If you are dealing with credit card debt, one of the worst things you can do during the payment process is to continue using the card. Most of the time, there will be regulations about this particular subject within the contract, but even if there is not, continuing to use the line of credit could cause major problems. In many cases, the credit card cannot be used because it is closed by the grantor due to lack of payment within 30-90 days or voluntarily closed by the borrower before the debt settlement arrangement was made. If you were forced to fall delinquent on your minimum monthly payments due to a valid hardship, it is very common that you will not have the option to continue using the credit line. Usually, debt settlement is agreed upon because you have made the case that you can not afford to pay back the amount you have already borrowed. By continuing to rack up money, you are essentially invalidating your argument, while also racking up additional debt that you are struggling to pay off.

Maintain Communication with Your Creditor

One of the key things to remember when negotiating with creditors is that, just like with any successful relationship, communication is key. During the debt negotiation process, your creditor wants to make sure that they will receive their money back and they truly will help you in any way they can to make sure that you both are successful during the process.

Any time you are having issues financially, the best course of action to take is to ask for assistance. By simply maintaining an open line of communication with the company you have an agreement with, you can work on battling your debt in a healthy and productive way that benefits your situation.

Creditors Expect to Trust You

When all is said and done after you finish your debt negotiation, the biggest expectation is that you establish a line of honesty and trust. The moment you chose to open a credit card or take out some kind of loan from the creditor, you assured them that you would pay them back and build your relationship from there. While we have outlined the general expectations of creditors after a debt settlement negotiation, the best way to truly know what your creditor wants is to set up a time for you or your debt settlement consultant to speak with them directly.

Contact Liberty Debt Relief to find out more about the debt settlement process and how it can help improve your financial future today.

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Laws Related to Debt Settlement That You Should Know About

Getting out of debt is not always easy. Aside from picking the right strategy that suits your financial situation, you also have to know what debt settlement companies expect and the legalities behind the situation. The best way to really fix your situation is to establish a basis of accurate information. If you know the most important United States debt settlement laws, you can avoid going into further debt, being taken advantage of by creditors, and even avoid legal trouble.

Fair Debt Collection Practices Act

The government wants to do its fair share in protecting consumers from unlawful debt collection actions, which is why they developed the Fair Debt Collections Practices Act (FDCPA) so companies cannot harass people over debt. Through this mandate, collection agencies are required to tell you who they are and what amount they are seeking to collect on behalf of what lender. From that point forward, you are essentially in charge of any and all communication with this collections agency.

According to the FDCPA debt settlement laws, not only is the collections agency not allowed to call outside normal business hours — around 9 a.m. to 5 p.m. — but you can also tell them what numbers and people they can and cannot call, as well as if you want them to cease calls to you altogether. At that point, they are only able to send notices by mail about any further actions they plan to take. If the agency continues to break these agreements and harasses you, you can file a complaint with the Federal Trade Commission and they will handle the situation from there.

Final Rule for Debt Relief Companies

Businesses like Liberty Debt Relief also have laws they must abide by so you can work with only the most trusted consultants available. In fact, the Federal Trade Commission issued the Final Rule for Debt Relief Companies, which states that is illegal for a company to demand upfront payment before your debt services are complete, all information about the services must be provided upfront before the services begin, and a company absolutely cannot produce any false advertising about their services.

Essentially, this regulation makes sure that you do not go into further debt by seeking help from an unaccredited company. Getting out of debt is entirely in your hands, as it should be. The main thing to remember when working with a third party is that their job is to help you negotiate debts and follow your lead, and anything that feels otherwise could be risky. Luckily, there are accredited debt settlement businesses available, including Liberty Debt Relief, that have a proven track record, a trustworthy reputation, and dedicated service.

State Regulations

Debt settlement laws are not only created by the federal government; states have their own regulations around the topic as well. While the specifics of each state are different, just about each one has a common establishment to protect consumers from debt relief scams. Some prohibit for-profit debt relief companies from doing business altogether, as well. The states that do allow these companies to do business often regulate how much the companies can charge consumers for their services, the contract procedure, and how these companies manage consumer and business finances.

Additionally, every state has an attorney general that maintains a database of unaccredited or questionable companies. When researching companies to work with, you can always check their status with your state’s attorney general office to find out if they have any information about that business’ practices. The Better Business Bureau also has a list of all businesses so you can see reviews, ratings, and other information about debt relief businesses and debt collection agencies before you get in contact with them.

If You Realize a Company Has Violated Regulations

Regardless of what your particular financial situation entails, you never have to succumb to harassment or scams. Just like with many other areas of the law, if you see something, the best way to handle it is to say something. Whether you are dealing with an unaccredited debt settlement company or a collections agency that is not following federal guidelines, you can report their practices and possibly sue for damages. When you are on the quest for debt relief, the last thing you need to worry about is faulty practices by companies that you are seeking help from.

If you do decide to report a business, contact your state’s attorney general’s office as well as the Federal Trade Commission and the Better Business Bureau. Procedures for doing so are on their websites, and you should be able to get in contact with someone quickly who can point you in the right direction of what to do following your report.

Work with a Trusted Company

If you are ready to start working toward getting out of debt, Liberty Debt Relief is a trusted company with a reputation for working with consumers to secure their financial future as quickly and easily as possible. With Liberty, a certified debt relief consultant with years of experience will work with you to ensure you get exactly what you want and need. Contact us today to get started and never pay an upfront fee!

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What Needs to Happen Before Settling Your Debt

There is no doubt that money is a stressful topic, especially when it seems that there is not enough in your pockets and too much in your outstanding balances. When debt seems to take over, many people find that settling that debt is their best option. While it very well may help countless people, it is crucial to understand what needs to happen before you choose to settle your debt with a company like Liberty Debt Relief.

Understand “Standard Qualifications”

The first thing to understand about debt settlement programs is that they are not for everybody. Some people begin looking at such programs when they are only in slight debt, meaning that they owe only a few hundred or less than $5,000. While those may be tough situations, they are not typically financially devastating and you can usually easily maneuver your way out in time. Negotiations are best for people who are in thousands of dollars of debt, usually as a result of a sudden hardship, such as divorce or being laid off from work.

If that sounds like your situation, it is essential to understand how a company creates strategies for debt negotiations and what they look for in successful cases. Some may look for clients to be in specific kinds of debt or within a certain limit of debt, while other are looking for people in specific kinds of financial hardship, such as rampant medical expenses. The general rule of thumb, however, is that debt settlement is best for people who desperately need help and who want to forego filing for bankruptcy.

Lay Out Your Finances

To truly know how a debt settlement company or expert does their due diligence in making debt negotiation work for you, start by taking a look at your own finances. It is always crucial to understand where you are at so you know exactly what you need and what you are potentially getting yourself into. The best way to do this is to write out all of your debts by type, amount, and interest rates and compare it to another written document that lists how much you earn every month and how much you spend on bills, debt, essentials, non-essentials, and savings.

Comparing this information will help you determine if you simply have a spending issue or if you truly do need financial assistance. If assistance is looking like the best option, try to narrow down how much you could realistically spend on paying off your debts every month without going into further debt with your bills or other parts of your budget. This number will be useful when negotiating with your lenders so that you can hopefully reach an agreement that suits both of your needs. In many cases, companies like Liberty Debt Relief can negotiate the new amount to about 50 percent of the original debt, but you also need to prepare for other potential outcomes.

Know What to Expect

Before you choose to sign onto a debt settlement plan, there are a lot of fine details you absolutely must know and understand. First of all, settling debt is a process that usually takes between two and four years. The problem does not simply disappear once negotiations are over, either. While you will likely not have to make multiple payments to various companies every month anymore, you will still be required to make a single monthly payment on time until the debt is paid off. Failure to stick to a designated payment plan can put you at a huge risk of getting into even more debt because the company can then break the contract and charge you an even higher interest rate than what you began with.

Talk to a Reputable Expert

The best way to find answers to all your questions, including “how does debt negotiation work” and “how will it impact my financial future”, talk to a trusted Liberty Debt Relief consultant today. They will sit down with you one-on-one to find out what you need to better your financial circumstances and how you can do so as quickly and efficiently as possible.

Contact Liberty Debt Relief today to take a leap forward into a bright financial future.

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5 Strategies Debt Settlement Experts Use During Negotiations

Getting out of debt is difficult, especially if you do not have experience in doing so. Luckily, there are companies out there who are experts in this area and can help you get out of debt a lot quicker and easier. While there are many experts out there to choose from to help, the best debt settlement companies will have years of experience and will work closely with you and your lender to create debt settlement strategies that benefit all involved. We at Liberty Debt Relief specialize in these negotiations. Here are five of the strategies we use:

1. Working with the lender, not the collector

Before debt negotiation services even begin, your debt settlement expert will want to know exactly who your lender is, how much you owe them (and for how long), and who, if any, debt collectors have been contacting you. Rather than dealing with the collector, however, a debt settlement expert will work with the lender directly.

As is turns out, most lenders only resort to debt collectors when they can no longer get in contact with you and, as most companies do, they have to dedicate more time to other customers. The downside to this move is that using a debt collector to get your money actually costs lenders an additional fee. Settlement experts know lenders want to avoid that additional fee and will call them directly to sort out the situation, saving both you and the company money. This can also help leverage the negotiations and make your creditors more willing to settle.

2. Building long-term relationships with lenders

The best debt settlement companies maintain positive relationships with various lending companies. If they have a proven track record of helping consumers settle their longstanding debts, they also have a proven record of making sure lenders get the money they are after. Many debt settlement experts will have a direct contact at various lending institutions that they can get into a conversation with on your behalf.

Those relationships can often make it significantly easier to settle your debts quicker and easier because the lender knows that they have a higher chance of getting paid in a shorter amount of time.

3. Explaining your situation

Once debt negotiators begin working on debt settlement with the lender, their strategies take an emotional turn. At the end of the day, companies want their money, so they need a good reason why you are not able to pay up. Your debt settlement expert is the one who will use your financial hardship to make an impact on the company representative they are working with. Whether you went through a divorce, the person who earned most of the money in your home suddenly died, or you were laid off, your negotiator will make sure the lender knows how bad you are struggling but are truly wanting to pay the company what you can.

A debt settlement is only available if you are not making payments to your lender, usually from three to six months. If a company sees that you are still making regular payments, they are less inclined to settle because they can simply keep charging you interest and will fully expect you keep paying the adjusted amounts. However, by ceasing your payments altogether, you are showing them that you truly can’t make the payments and they would generally rather agree to a smaller amount altogether than for you to not pay them a dime.

4. Being persistent and ready to haggle

The key to a successful debt settlement is the negotiation. The best debt settlement companies will not be willing to take the first counter offer a lender provides them. Instead, they focus on you and what you can actually afford to settle for. Before even making an offer to your lender, they will sit down with you, look at your debts, income, and budget to help you come up with various payments and lump sums to pay your lender that are actually affordable.

In the best case scenario, a debt settlement expert will convince your lender to slash the debt by about 50 percent or more. However, not every lender will be willing to cut your debt by that amount, so the debt settlement company will also make sure to determine the optimum amount you can reasonably and definitively pay during a settlement. These negotiations may take a few months, but as long as your negotiator is persistent and consistent, there should not be a problem in getting the settlement you can afford.

5. Making an offer companies can’t refuse

The last and final step settlement companies take during their client’s debt settlement strategies is to make an offer to your lender that will benefit them in the long run. By this point, you have not been making payments towards the outstanding balance on your account and the one outcome that every lender wants is to receive some form of payment. Believe it or not, there is actually a limit for how long a company can keep you in debt, and if they do not receive your payment before then, they lose the money from you altogether (even though your credit will take a long, hard hit). Therefore, it is better for them to accept a smaller amount than to accept nothing.

Official debt settlements are also signed by you, the negotiator, and the lender to certify that all parties understand what is to happen. When you sign the settlement, you are agreeing to either pay a lump sum or to make smaller monthly payments with no interest for a few years until the new outstanding balance is paid off. There is also the agreement that you will make your payment to the lending company itself and not a debt collector, if one has been assigned to your case, so that the lender does not have to pay the collection agency additional fees.

Contact Liberty Debt Relief to learn more about these expert strategies and how we can get started on relieving your debt today.

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