Who to Use: An Attorney or You?

It’s a tough call. You need to decide whether you’re going to use an attorney or do it yourself to settle your credit card debt. You’ll need to know some things about yourself and your own situation before you decide. Your other consideration needs to be how an attorney can assist you if you decide that course of action.

Do It Yourself

There are qualities that you must possess if you are to do the settlement negotiations yourself. If the statements below are true, then doing it yourself may be the right decision.

You understand it could be a humiliating process. Nobody will stand between you and your creditor and shield you from them. Creditors will press you hard for as much money as they can get out of you.
You are ready to deal with sometimes mean and harassing creditors. Not all creditors follow the Fair Debt Collection Practices Act (FDCPA). You will need to be well versed in this law to keep them accountable.

Video: Negotiating with Your Credit Card Company is Easy

You’ve negotiated other difficult life situations and were successful with that. Maybe your job has presented some opportunities for you that equipped you for this.
You can set your emotions aside for the common goal of settling your debt with your creditors. It’s a difficult and arduous task. Not a challenge to be taken on lightly. It can definitely try your patience.
You have enough money side aside, or are now making enough, to settle the debt. You can’t settle a debt with little or no money.
You understand this may take some time and are willing to weather it out.
You are willing to write letters to your creditors clearly explaining your offer and terms if you need to.
You understand that you shouldn’t agree to or sign anything until you get everything from your creditor in writing.
You know the actual note holder of each of your debts. Keep in mind, your credit card debt could have been sold off to a second, third or even fourth collection agency.

Hire An Attorney

On the other hand, you may want to hire an attorney and not have to deal with all the rigmarole. See if any of the following rings true.

You’d rather not deal with creditors yourself.
Is your credit card debt significant?
You don’t mind that it may take some time for the attorney to settle your debt.
You understand it will cost you some money to use an attorney to settle your debt.
You know of others who have used an attorney, and it worked out to their advantage.

Keep in mind, that credit card settlement attorneys do this for a living. They know the ins and outs of the game. Another item to note is that creditors are sometimes more willing to work with a mediator, like an attorney, rather than the individual who owes the debt.

negotiate credit card debt

Strategic Negotiations

It’s your decision. If you decide to do it yourself, you’ll need a searing strategy. Strategy is key to the success of negotiating a reasonable settlement of your credit card debt.

Preparation

Prior to speaking with your creditors, you’ll want to be prepared with all pertinent information.

Have a copy of your current bill in front of you.
Have a copy of any collection letters you’ve received.
Know your finances and what you can pay to each creditor either in a lump sum or monthly.
If offering a lump sum, start with offering them 40% of what you owe. If you can’t pay at least 40%, your negotiations probably won’t go well.
If settling on payments, start with 40% of the debt as your goal and determine how much you can pay each month to satisfy that debt.
If your accounts are several months past due, then be prepared for an adversarial situation. Keep your emotions in check and stick to the facts. Don’t let the creditors bully you. Don’t get angry and lose your temper. You have a debt. You want to settle the debt. You need their assistance in settling the debt.

Once you have your financial facts organized, call each creditor with your offer. Be prepared and know your goals.

Goals

There are several goals you’ll want to achieve in your negotiations. You’ll need to know what they are.

Start with an offer to settle your credit card debt for 30 to 40% of what you owe. This will depend on how much money you have available to pay on your overall credit card debt.
Require the creditor to remove all late fees, over-the-limit fees and finances charges from the account.
Require all negative credit reporting to be removed from your credit report once a settlement is agreed upon.
In your negotiations, include that you expect the creditor to note the following applicable activity to all three major credit reporting bureaus. If you’re not careful, creditors will leave your account open with slow or late marks and/or indicate the account was closed by them not you.

Your account is paid off.
Your account is being paid on time.
Your account was closed by you.

Keep a log of all that was discussed with each creditor, who you spoke to and the date/time of the conversation. Also note the final settled amount and any payments agreed upon.
Again, keep emotions in check and stick to the facts.
Keep your creditor focused on the facts. Oftentimes they will become argumentative or demanding if the payments are several months late.
DO NOT do a payment over the phone to the creditor.
Require the creditor to send everything you discussed in writing before you pay for anything.

Video: How Do I Get Out of Debt?
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End Negotiations

You’ve put together a great plan, presented it to your creditor and they refuse the settlement. If they refuse a 40% settlement of what you owe, then walk away. Be polite in your closing, but walk away from the negotiations for now. This applies only if you are several months behind on your payments. With the state of the current economy, creditors are much more likely to eventually settle on your offer.

After you’ve ended the negotiations, wait for a couple of weeks before initiating any more negotiations with this creditor. Don’t become impatient and cave in to their demands. It is common practice for creditors to send out a settlement letter that will be more favorable to you. It is highly unlikely that you will not be able to negotiate an amenable settlement between you and your creditor.

Hire An Attorney

Have you determined that settling your credit card debt is just not for you? Want to hire an attorney, instead? Below are several attorneys and firms that specialize in debt.

Consumer Debt Law
13635 Exotica
West Palm Beach, FL 33414
(877) 571-9690

Debt One Law Firm, LLC
261 12th St. NE.
Suite 1000
Atlanta, GA 30309
(866) 955-2934

Nicastro Piscopo, Attorneys at Law
2331 W. Lincoln Ave.
Suite 200
Anaheim, CA 92801
(714) 533-6000

O’Connor Acciani & Levy
1014 Vine St.
Suite 2200 (Kroger Building)
Cincinnati, OH 45202
(866) 906-0105

Law Offices of David Stewart
777 E. Thomas Rd.
Suite 100
Phoenix, AZ 85014
(602) 548-4600

Johnson Law Group
1050 Indigo Dr.
Suite 110
Las Vegas, NV 89145
(866) 862-7870

Stubbs & Perdue, P.A.
8450 Falls of Neuse Rd.
Suite 206
Raleigh, NC 27615
(800) 856-9881

Methner & Associates
1780 S. Bellaire St.
Suite 828
Denver, CO 80222
(303) 293-2828

Miller & Miller Law Associates
735 W. Wisconsin Ave.
Suite 600
Milwaukee, WI 53233
(414) 326-9231

Doan Law Firm, LLP
2850 Pio Pico Dr.
Suite D
Carlsbad, CA 92008
(760) 450-3333

The Troglin Firm, P.C.
5950 Live Oak Pkwy.
Suite 125
Norcross, GA 30093

William J. Mcleod
77 Franklin St.
Boston, MA 02110
(866) 397- 8278

Tollefssen Law Office PLLC
999 3rd Ave.
Suite 3800
Seattle, WA 98104
(206) 962-7525

Valentine Legal Group, LLC
7319 Hanover Pkwy.
Suite C
Greenbelt, MD 20770
(301) 513-9500

Cindy K. Miller
225 Welch Way
Westfield, NJ 07090
(908) 789-9299

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