Can I Settle Consolidated Debt?

Georgia residents who have debts across various credit cards and with a wide range of creditors might decide to consolidate their debt if they are having trouble repaying what they owe. As Forbes explains, there are many different types of debt consolidation loans that can be available to debtors. Through such debt consolidation loans, debtors can consolidate credit, personal loan, medical, and other types of debt. Often, one of the alluring benefits of a debt consolidation loan is that the interest rate is lower than what the debtor has on existing loans. In addition, monthly payments are lower than what the debtor is currently responsible for paying. However, many debtors who decide to borrow loans to consolidate their debt because they are struggling with regular debt payments will also find themselves having trouble repaying their debt consolidation loans.

If you are having trouble paying a debt consolidation loan, is it possible to negotiate a debt settlement agreement with that creditor? Debt settlement can be possible with the creditor associated with a debt consolidation loan. Our Lilburn debt consolidation lawyers can explain.

Debt Consolidation Loans Can Be Treated Like Other Debt for Settlement Purposes

For all intents and purposes when it comes to the possibility of debt settlement, debt a person owes from initially making charges on a credit card versus debt a person owes because of a debt consolidation loan are not effectively different from one another. In other words, you can reach a settlement agreement with a bank or creditor holding a debt consolidation loan just as you can with a creditor to whom you owe credit card debt.

In what kind of circumstances is a creditor likely to agree to debt settlement for a consolidation loan? Typically, you will need to be behind on the loan payments and at risk of default or in default. In short, you have not fulfilled the terms of the original loan agreement you made with the creditor.

Negotiating a Settlement Agreement for Consolidation Loan Debt 

If you are behind on payments for a debt consolidation loan, the creditor may be willing to negotiate a settlement agreement. You should work closely with an attorney who can handle these negotiations for you. In many cases, debtors are able to pay only 50 percent of the total owed in order to settle their debt with the remaining debt forgiven.

To get the best debt settlement offer, you should have an experienced lawyer negotiate on your behalf. You should also be prepared to pay the settlement amount up front.

Contact a Georgia Debt Settlement Lawyer for Assistance Today

If you went through debt consolidation and are now struggling to make the regular payments associated with your debt consolidation loan, you may be able to settle that debt. To be clear, there are no restrictions on settling consolidated debt, and many of the banks that offer debt consolidation loans are willing to negotiate debt settlement agreements when debtors are behind on payments and at risk of default. To find out more about your options, contact an experienced Georgia debt settlement attorney at Konn Law Firm LLC today.

Source:

forbes.com/advisor/l/best-debt-consolidation-loans/?utm_source=google&utm_medium=cpc&utm_campaign=20582791854&accountid=6669590942&utm_content=160055637590&utm_term=kwd-115428179&network=g&device=c&placement=&location_physical=9004868&device_model=&creative=682832930097&gad_source=1&gad_campaignid=20582791854&gbraid=0AAAAApXEuqCtbhz5LC4lQA41w3xlajz4q&gclid=EAIaIQobChMIlJSPwf68jgMVD6BaBR3oghgMEAAYAiAAEgJ6bfD_BwE