Debt Settlement in New Hampshire

Examining Your Debt Relief Options

In the face of overwhelming debt, whatever you do, you want to take action. The long-term ramifications of unpaid debt are extensive, but by educating yourself and planning, you can get back on track to creating a financial future that is much brighter. If you are considering debt settlement and other debt relief options, I encourage you to contact me at Bryan W. Clickner, Attorney at Law, PLLC for help!

With nearly 25+ years of experience as a New Hampshire bankruptcy lawyer, and a passion for helping people become debt free, you can turn to my law firm for the legal guidance and support you need. In a free consultation, I can review your situation and advise you on which options I would recommend to turn your situation around for the better once and for all.

What is debt settlement?

It is not uncommon for debtors to become so saddled with credit card debt or medical bills that they cannot recover. Debtors who have access to cash can arrange a debt settlement agreement with the credit card company; however, they should know that it can negatively affect their credit score and their ability to obtain credit in the future.

With a debt settlement agreement, the debtor makes an offer to a company to accept less than what is owed as a full and final payment of the debt. Although an accepted offer prevents the lender from selling the debt to a collector, it may leave a black mark on the debtor's financial history for seven years.

By the time a debtor considers debt settlement, their credit rating has already taken a beating from having multiple late payments for 30, 60, or 90 days. These late payments not only drop a credit score by up to 200 points, but a debt settlement arrangement shows a "paid" not a "paid as agreed" on a credit report, leaving another black mark on a credit report.

While paying the full amount owed would harm one's credit score less, it does not remove any previous late payments that will show on the credit report for seven years.

Contact a Manchester bankruptcy attorney!

If you have access to cash and believe that debt settlement is a good option, I recommend offering less than what you can afford to pay, typically around 25% of your debt is a good place to start. It is important not to be rushed and to never act to eager to settle.

You should not accept the first or second settlement offer, and never let the debt collection agency think that they have the upper hand. Most importantly, do not send anything until you have the agreement in writing.

To learn more about all of your debt relief options, please contact my firm today!