Debt Negotiation
Debt negotiation is sometimes referred to as debt settlement. This is a valuable service offered when a client is unable to make the minimum payments on credit cards or lines of credit. They are at a loss as to how to manage their debt; they see no end in sight as their credit score lowers each month. The phone never stops ringing but the client has typically stopped answering the calls because they can no longer deal with the situation.
When our firm negotiates a settlement, it is typically for a lump sum as full and final payment on the debt. While the settlement does not automatically improve the client’s credit score, it does, over time, improve as long as no new negative credit problems arise.
As an example, if you owed $5,000 on a credit card and the attorney’s office makes an agreement with the credit card company to pay $2,800 instead of $5,000 as settlement in full on the debt, this would be a credit card negotiation and your credit report would show that the debt was satisfied through a negotiated price.