Necessities Versus Wants: Does It Matter What Type of Debt I Am Trying to Settle?
Struggling with consumer debt is becoming an increasingly common experience in the Lilburn, Georgia area. With inflation and rising prices for necessities, many Americans are charging purchases they cannot repay or using “buy now, pay later” services that only lead to more debt in the long run. Depending on your circumstances, you may be able to get out of the debt you are currently in through a debt settlement agreement.
Yet you might be wondering: can you settle debt that you did not need to charge in the first place? In other words, does it matter if you accrued debt to pay for needs or merely for wants? Our Lilburn debt settlement lawyer can tell you more.
You Can Settle Debt Accrued for “Needs” or “Wants”
When a debtor works with an attorney to negotiate a debt settlement agreement with a creditor, the creditor is not typically assessing the specific charges that led to the debt. In other words, you can often settle debt you accrued whether it was for necessities such as groceries or utility bills, or it was for “wants” such as unnecessary clothing purchases or travel.
Rather than focusing on the nature of the debt, the creditor is going to be focusing on the amount of money they might ultimately expect to be able to obtain from the debtor without settling the debt. If a settlement would result in the creditor recouping more than they otherwise might, the creditor may be particularly willing to negotiate a settlement agreement.
How Does Debt Settlement Work?
Debt settlement agreements work like this: the debtor’s lawyer negotiates with a creditor to reach an agreed-upon amount that is a percentage of the total debt owed. Once there is an agreed-upon settlement amount, the debtor typically makes that payment up front
In exchange for receiving that up-front, lump-sum payment, the creditor agrees to forgive the remaining portion of the debt. For example, if you owe $20,000 and negotiate a settlement for $12,000, you would pay the $12,000 and the remaining $8,000 would be forgiven.
Contact a Lilburn Debt Settlement Attorney for Assistance Today
Are you struggling to repay the debt you owe? Are you in a situation where you may be able to afford a lump-sum payment of a portion of the total debt you owe? If so, you should consider debt settlement. You do not need to be concerned about the manner in which you accrued the debt. To be clear, when negotiating a debt settlement agreement, creditors are not more or less likely to reach a settlement agreement based on the specific purchases you made that resulted in your debt. Instead, the creditor will be interested in what it considers to be a fair settlement offer so that it can recoup some of what you owe without having to sell your debt for pennies on the dollar to a debt collector. Creditors do not want to have to write off all of your debt. Obtaining a portion of what you owe is often preferable. An experienced Georgia debt settlement lawyer at Konn Law Firm LLC can begin working with you today on a debt settlement negotiation. Contact us for assistance.
Source:
cnbc.com/select/what-is-debt-settlement/
