On average, Americans carry over $90,000 in debt. When your debt is out of control, there are options before filing for bankruptcy. A debt settlement lawyer, for example, may be able to put you in a better financial position.

But what is a debt settlement lawyer and what is the advantage of hiring one? We’ll tell you all that, plus provide another option. Keep reading to learn more about settling debt with the help of a lawyer.

What Is a Debt Settlement Lawyer?

You might consider the help of a lawyer when your debt gets out of control. A debt settlement lawyer can help you decide if debt settlement is an option for you.

Debt settlement is an arrangement between you and your creditors where you could end up paying less than what you owe. Creditors accept these agreements because the lump sum payment is better than receiving nothing should you file for bankruptcy.

A debt settlement attorney will analyze your financials and help you decide if this option will work for you. If a creditor files a lawsuit against you, they can also represent you.

Benefits of a Debt Settlement Lawyer

A debt settlement lawyer will review all of your financial information. Armed with that information, they’ll form a strategy for you. That strategy might include debt consolidations, lowering your debt, or creating a payment plan.

The best debt settlement lawyer will have great negotiation skills and they’ll know how to speak with creditors. In their years of law school and through years of experience in the job itself, they’ll have learned how to do this while still protecting your rights and interests.

You might consider a debt settlement lawyer for all kinds of unsecured debt. That includes debt from credit cards, medical bills, and even student loans.

In all of this work, a debt settlement attorney will help you minimize any legal risk. They’ll even consider important things like your credit score.

Option 2: Debt Settlement Company

When you’re looking to hire a debt settlement lawyer, you might also come across a debt settlement company. A debt settlement company costs a lot less than a lawyer and could be a good option if you’re looking to negotiate your debt.

When you work with a debt settlement company, you make payments to the company and they negotiate with the creditors on your behalf. Part of these payments pays the company. The other part of these payments goes toward a savings account, which will then be used to pay your debts when you’ve saved enough to start negotiations.

Looking for Help with Debt Settlement?

A debt settlement lawyer can help you negotiate with creditors while protecting your rights as well as your credit report. While they do cost a pretty penny, they’re a great option when your debt has gotten out of control. Alternatively, you might consider a debt settlement company, which is a bit more affordable and they do similar work.

Still not sure? Contact us today to find out how we can help you.