Why We Offer Debt Settlement
TweetFar too many American consumers have insurmountable debt that only continues to rise year after year. After exhausting other forms of debt management, the majority of these debtors realize that they cannot realistically pay off their debt. So they have no choice but to turn to more extreme measures. They feel that bankruptcy may be their only option.
However, there is a way to pay off your debts and avoid bankruptcy, and it won't take years to do it either. Debt settlement, or negotiation, is an effective method of getting total balances reduced to a realistic pay off amount.
There are many naysayers out there who claim that debt settlement is unethical, illegal, doesn't work…etc. The majority of these naysayers work for the banks and for debt collectors - so their opinion is biased and shouldn't matter to you. Creditors want their money and as much of it as possible. The FTC and credit bureaus work closely with these creditors and have an alliance with them; the information you'll get from them is also hasty, biased and does not present the whole issue.
The downside according to your creditors
You will have to pay a fee for hiring a professional negotiator. Are there companies that charge exorbitant fees? Yeah, there are. But Legacy isn't one of them. Our fees are very reasonable and are based on what we actually end up saving you. We don't make any profit until your debt has indeed been reduced. If we don't save you money, we don't get paid - period.
And, if you don't have money saved up, don't worry! We offer affordable payment options.
The other side of the story
There are many legitimate, ethical, legal debt settlement companies, Legacy being one of them, who provide permanent solutions and the help debtors deserve. Debt settlement does work, and there is nothing illegal or unethical about it.
You could choose to negotiate with your creditors yourself, you don't have to hire a professional negotiator. Debtors who choose to go solo may be able to talk their creditors into lowering their balance and may see about a 20% reduction (on average). However, if you choose to go with a legitimate professional debt settlement company, you could see a 40% to 60% reduction on balances. Professional negotiators have the expertise and knowledge to generate better results.
Your credit will take a hit
Huge contention with the critics; "Don't hire a debt settlement company, they will ruin your credit." Truth be told, debt settlement does reflect negatively on your credit report. Here's why, in order to get your creditors to cooperate, you do have to prove that you are having a difficult time paying your bills. Normally this will show up as a "late pay"; which is negative. When the creditor does end up accepting a reduced payment they will list it as "settled for less". Occasionally a creditor will agree to list the negotiated amount as 'paid in full', but they are usually sticklers on this one. And yes, a "settled" account is a negative listing. There are two kinds of negative credit: the kind that says you won't or don't pay your bills, and the kind that shows too much debt - either way, you will be denied new credit because both show a lack of responsibility by you. Once the debt is paid off or settled, it changes everything.
Consider all the damage that has already been done to your report by having excess debt. Debt to income ratio, available credit and utilization are all factors that negatively affect your score. Until balances are paid down, your report will suffer. Not to mention the likelihood of derogatory information, such as late pays, that existed prior to debt settlement. The debtor is having difficulty paying off debt, hence the need for settlement and getting out of debt is the number one priority right now.
Plus, any damage that results from settlement can be handled with our credit repair process.
You will receive collections calls
One of the negative aspects of debt settlement is that you do need to fall behind in order for your creditors to be willing to accept less. While falling behind there will be an increase in calls from collection agencies, which can be stressful, embarrassing and down-right annoying.
We can help put an end to the calls by talking to the collectors for you. If a collector calls you regarding an account that we are settling, direct their calls to us by saying: "I have given power of attorney to Legacy Legal to work this out for me, please call them." This is all you should have to say, but, if they persist, or say they won't work with us, use a firmer tone of voice and say "I have given them power of attorney, direct your questions to them." If they still refuse, take down their name and phone number and call us. Note: remember, they are debt collectors and will sometimes say things to upset you and keep you on the phone.
A side note: until the debt is paid (whether in full or for a settled amount) there is no guarantee that collection calls will stop completely - collectors want their money too. But consider the trade off; your debt is being cut nearly in half. Can you handle a few annoying calls in the meantime?
The point is, debt settlement is designed to save you money, not to save the world
There are pros and cons to every debt management technique. You can choose to stay in debt and suffer the consequences of financial bondage and stress or… you can choose to pay off the total amount of your debts on your own and suffer the consequences of how long it will take; in addition to the accumulating interest or… you can choose to go with credit counseling, which is basically the previous method, but in return for getting late fees and penalties waived, you will pay credit counselor fees or… you can choose to file bankruptcy and trash your credit for 10 years…and so on.
