What is Debt Settlement?

Many Arizonans struggle under the burden of debt. You are not alone. Often, the debt builds up due to the pandemic, unemployment, or unforeseen medical expenses. It can place your well-laid plans in a state of disaster and make your goals of purchasing a home or car feel out of reach.

Debt Settlement is an option which allows you to reduce your debt and help lessen the overall amount you owe to your creditors. Debt settlement is a process in which a creditor agrees to accept a reduced amount for the existing debt. Depending on the creditors, they are willing to work with consumers to negotiate either a lump sum or a lump sum and payment plan options. The final outcome is most often a definite “win” for both the consumer and for the creditors.

The negotiation process can be difficult to navigate on your own, and the more creditors you have, the more difficult it becomes. Oftentimes, creditors can be stubborn and take a very hardline approach. Hilltop Law Firm has the experience to help navigate these murky waters and has the tools necessary to deal with the creditors’ tactics. We also have a proven track record of making the process easier and offer a favorable outcome that fits your budget.

What is the difference between debt settlement and debt consolidation?

Debt settlement is the process of negotiating a reduction in the amount of debt you owe. Agreements are reached with each creditor and payment plans are made to allow you to pay off the reduced balance.

Debt consolidation is taking out one loan to pay off another existing loan. If you are currently struggling with the amount of debt you have, debt consolidation may not be a useful option. To get the consolidation loan, you must first qualify, and many Arizonans don’t have the credit score to meet the requirements. If you have the means to continue making payments at a reduced amount, debt settlement is a better option.

Phony Debt Collectors – How to Spot Them and What to do About It

Phony Debt Collectors – How to Spot Them and What to do About It
Increasingly, fraudsters are posing as legitimate debt collectors or attorneys and offering to accept a discounted amount to settle valid debts. They call unsuspecting consumers and are convincing. They typically know your social security number, your address, the amount of the debt, and the name of the creditor. They will claim to be from an organization with an official-sounding name. They will send you official-looking documents to sign. And, after you’ve paid, the real debt collector will still be able to pursue you for the full amount owed. Some common red flags are:

They try to schedule a time for you to be home to serve you papers.
They threaten to send the police to your house if you refuse to pay.
They get mad if you try to ask questions.
They refuse to send you verification of the debt.
They give bogus case numbers and court names.

There are certainly more tactics that they will try. If you get a suspicious call, you should never agree to pay any money without first verifying the validity of both the debt and the identity of the people trying to collect it.

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