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How to Know if You’re Being Crushed by Interest

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A Mindful Money Test to Tell If You’re Being Crushed by Interest

You’ve been diligently paying off your debt, but it seems like you’re barely making a dent. Your balance is the same as it was last month, and you’re getting frustrated. Before you give up, it’s important to understand the role that interest plays in your debt.

Interest is the price you pay for borrowing money, and it can have a major impact on your ability to pay down an account. When you’re trying to pay off debt, you’re essentially in a race against time. The longer it takes you to pay off your debt, the more interest you will accrue, and the higher your balance will become.

Taking a Mindful Approach to Money

This is all simple in theory, but in actual practice we rarely think of what we’re paying in interest. It isn’t because we don’t think it’s important. It’s because credit card companies creatively set the information out-of-the-way so it rarely comes to mind.

But, with just a few moments of mindfulness, you can get a whole new perspective on the interest you’re paying every month. This 10 minute mindful money test will tell you if you’re being crushed by interest.

woman writing - settling debt

Gather Your Recent Billing Statements

For this exercise, you’ll need to have at least one recent credit card statement on hand. If you can, grab two or three months’ worth of statements, but only do the exercise with one month at a time.

If you don’t have physical statements, you can usually log onto your credit card issuer’s website and view them electronically.

Add Up the Interest You Paid

The first step is to add up all of the interest you paid over the course of the month. This should be listed as a single line item on your statement. If you’re looking online, you can use the FIND function on your computer to search for the terms “interest” or “finance charges.”

Jot down the interest charge on a piece of paper, and tally up how much you paid in interest.

Check Your Gut

Once you’ve arrived at your final number,  take a few minutes to sit with the information you’ve jut learned. Jot down some thoughts if it seems helpful.

Take into account your immediate gut reaction. Did the number of digits to the left of the decimal point shock you, or were you relieved that it wasn’t more?

Next, (and this part is really important) think about what you got for that money. Do you feel like the ability to use the credit card was worth the price of the interest you’re paying?

We can’t provide a formula or calculator for this part, because it’s different for everyone.

Maybe you’re totally okay with the interest because of the convenience and rewards you get from using the credit card. Or, maybe you feel like the interest is totally unreasonable, and it’s time to focus on getting rid of the debt as quickly as possible.

There’s no shame in either reaction. The goal of this exercise is to get you thinking about your debt in a new way, and to help you make decisions about how to best take control of your financial future.

If you decide you don’t like the way interest is impacting your ability to pay off debt, give us a call. Our debt relief attorneys and their legal team will present clear options so you can find a solution that works for you.

Struggling with debt? There ARE options. Request a free consultation today!

Lessons to Help Your Children Avoid Debt

4 Money Lessons to Help Your Children Avoid Debt

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Too many people today are facing financial hardships because of their debt. Recent studies show that more than a third of Americans feel their financial situations have worsened over the past year.

If you’re among the multitude of people struggling to make ends meet due to debt, the debt relief attorneys at National Legal Center are here to help. We don’t just want to help you, though. We want to help your children, too! Here are four money lessons to help your children avoid debt.

1. Teach your children to envision financial success.

4 Money Lessons to Help Your Children Avoid Debt

Every parent wants their child to be successful. Success, of course, can be defined in a multitude of ways. For now, though, let’s focus on financial success.

Many people were raised to equate wealth with greed or that well-off people must have done something morally questionable along their path. Money doesn’t have to be vilified, though. There’s nothing wrong with encouraging your children to envision themselves as being financially successful in the future.

Ask your child to envision their future financial success. Ask them what it looks like. Allow them to imagine and let them bring you into that world with them. Having conversations like this will help them define financial success and adopt a mindset that creates a healthy relationship with money.

2. Teach your children the difference between debit and credit.

Recent surveys show that 79% of the national population embraces credit cards. However, while credit cards are very convenient, you can easily overlook that credit is just debt in disguise and can be harmful when not handled responsibly.

When discussing money with your children, you should explain the difference between debit cards and credit cards. Begin by explaining how using a credit card allows someone to buy something now and pay for it later, whereas a debit card directly pays for the transaction with funds in the bank.

You might also consider explaining the security benefits that come with credit cards over debit cards. Specifically, they limit the direct line of access to your bank account. Of course, as with many financial decisions, your child will want to understand how to weigh the pros and cons as they decide whether to use debit or credit.

3. Instill financial values intended to help your children avoid debt.

4 Money Lessons to Help Your Children Avoid Debt

There’s a lot of buzz about bringing financial education into public schooling curriculums. National Legal Center Principal Attorney, Arthur Kohler, emphatically embraces the initiative and believes it can benefit our next generation tremendously.

In addition to bringing financial education into schools, we need to instill financial values, which starts at home.

There are a few financial values that can help your children avoid debt.

First, your child should know the importance of saving. If you teach them about money from an early age, it shouldn’t be challenging to guide them to understand that saving is essential to avoiding debt and securing their financial future.

Second, make sure your children understand the importance of living within their means. They need to know that debt is not a way of life, and they must always make an effort to spend and save responsibly.

Next, instill in your child that credit can be helpful, but it can also be dangerous. Make sure they know that credit is a tool they should use responsibly. Credit cards are heavily marketed and can seem exciting, but your child should understand how credit leads to debt if not used correctly.

Finally, we come to gratitude. It is so easy to fall into the trap of comparing ourselves to others and aligning our worth or success to others’ material belongings. Helping your child find gratitude for the things they have—especially the non-tangibles—will make it easier for them to ignore that yearning that we all experience.

4. Encourage your child to be open about finances (by being open yourself).

4 Money Lessons to Help Your Children Avoid Debt

Studies show that children learn lessons more quickly than adults. We know this to be especially true when it comes to learning languages—the more they hear it, the easier it is for them to learn.

So, let’s apply this same concept to money matters.

The younger your child is when they begin to learn about money—and the more they encounter discussions about it in their home—the easier it will be for them to understand the concepts. Parents can encourage their children to be open about finances by being open about their own finances.

You can further your child’s understanding of finances by talking with them about how you manage your money. Specifically, share the struggles you have faced, those you’ve overcome, and those you’re still working through.

Most of us face financial insecurity at some point in our lives.

Teach your child that this is normal and that even the direst of debt can be resolved by being willing to speak with others and get help when needed. You have the opportunity to show them how to put this into practice by ‘walking the walk.’ This is the rare situation where that actually happens by ‘talking-the-talk’!

Be honest and open with your children about the power of getting the right advice and how it can change lives for the better.

Perspective: Ellen Rogin

Financial education is a passionate topic for many of us here at National Legal. Admittedly, though, it’s not our pure focus. We are a law firm. We help people #standuptodebt, assert their rights as a debtor, and use legal strategies to solve their debt difficulties.

Ellen Rogin, though, is an expert in financial education.

Here is her TedTalk, where she offers actionable suggestions to help your kids avoid debt.

In Conclusion

By instilling these financial values early on, your children will have a much easier time avoiding debt as they get older. They will know not to fall for the credit card hype, and they’ll come to understand that overspending (and the debt that comes with it) doesn’t need to be a way of life. Instead, encourage them! Be open with them and lead by example, even when it’s tough.

If you’re overwhelmed by debt and need a helping hand, let us lead the way. The compassionate legal team at National Legal Center is ready to guide you to a debt-free future, one step at a time.

Struggling with debt? There ARE options. Request a free consultation today!

Medical Debt in Collections

3 Ways to Lower Medical Debt in Collections

Healthcare expenses in America have long been a problem. However, it wasn’t until 2021 that we learned how far-reaching the problem is. At over $180 billion, medical debt became the largest source of debt in collections.

How much medical debt is in collections? There are more unpaid medical bills in collections than all other debt types combined.

In this article we’ll be exploring three ways to lower medical debt in collections.

First, take a moment to enter your email below to receive our free Financial Wellness email series to receive simple and effective strategies to bring financial wellness into your world.

3 Ways to Lower Medical Debt in Collections

At National Legal Center, we know debt.

Medical bill debt relief can be had several ways. Some options to lower your medical debts may be more advantageous than others, depending on your circumstances.

The debt settlement attorneys at National Legal Center negotiate medical bills for clients in a variety of situations. Here are three ways to lower medical debt in collections before and after your medical provider places the accounts with a third-party collection agency.

For a free review of your medical debt, complete the form below and a member of our legal team will reach out to discuss medical debt relief options. 

1. Reduce Your Medical Bills with Charity Care

When you need to lower your medical bills, you should usually start with the medical provider. You’ll usually find the hospital’s billing staff or doctor’s office to be helpful. Sometimes they can even be your strongest billing advocate!

The representatives in the billing department are familiar with medical billing errors, billing codes, charity care programs, and more.

If your account hasn’t been sent to a medical debt collection agency yet, this may be your best way to keep the account current and prevent medical collections from landing on your credit report.

How to reduce medical debt in collections with charity care

“Charity care” is a discount program offered by hospitals, clinics, and health care providers. It is also known as a Financial Assistance Program. It helps individuals with lower income meet the expense of medical treatment they might not afford otherwise.

Non-profit hospitals must offer charity care (a Financial Assistance Program) to maintain their tax-exempt status. There are some requirements, but the specifics of the charity care program are generally left to the individual hospitals. The primary intent of the programs is to reduce medical costs for people who fall within specific income parameters or who meet other qualifying circumstances.

While all non-profit hospitals should have charity care programs, they don’t always make them very well known.

Ask the billing department for information on the medical provider’s charity care program. The Financial Assistance Programs usually reduce medical expenses on a sliding scale, so the less you earn, the more you benefit. Don’t let that deter you from applying if you have a fair income, though. Other factors come into play, too, such as:

  • Income
  • Number of dependents
  • Cost of medical treatment
  • Type of medical treatment
  • Employment status
  • Monthly expenses
  • Savings available

Given that the Financial Assistance Programs review many criteria to determine whether or not you qualify for a reduction, you should at least consider applying for charity care to lower medical bills no matter your income.

What happens after using charity care to reduce a medical bill?

After applying for charity care, you’ll receive a letter letting you know the outcome of the review. Depending on your circumstances and the program’s guidelines, the provider might waive the medical bill entirely. Or, it is also possible that they may partially reduce the debt rather than extend total medical bill forgiveness.

Once the balance you owe is updated, you can make monthly payments or a lump sum payment to cover the remaining unpaid medical bill.

Does using charity care to lower medical bills affect credit?

No. Charity care is a form of financial assistance that can help you lower your medical bills. However, it does not impact credit scores or your ability to get treatment from medical providers in the future.

There are two exceptions.

If you still have a balance owed after adjustments from charity care, failing to pay it could result in the collection agency reporting the account on your credit report. So long as you pay the bill, you’re good to go!

The only other exception here is if the account was already handled by a collection agency when the provider applied the charity care. In that case, the collection agency should update your credit reports with the new balance. Then, once you pay the debt in full, it should reflect a $0 balance on your credit report.

3 Ways to Lower Medical Debt in Collections

2. Lower Medical Bills by Identifying Errors

It’s easy to get confused between technical explanations of benefits from health insurance companies and multiple bills from healthcare providers. All the paperwork falls into our unfamiliar hands, and most of us just assume the information is correct.

We should be able to trust that the service provider and insurer have correctly charged for medical care, right?

Not so fast.

The American Medical Association estimates that around 75% of medical bills contain errors. Clearly, medical coding and billing errors are incredibly common, so it is best to begin taking a closer look at those bills.

Addressing errors with the billing department.

Just as with charity care, you may be able to reduce your medical bills by addressing errors with your medical providers. The same individuals who can help with charity care can also help you review your medical bill for accuracy.

It will help to have specific items that you’d like them to review with you, but if you need them to go line by line to help you understand what they’re asking you to pay, don’t hesitate!

We pay a tremendous amount of money for medical care in America. It’s okay to utilize the hospital or doctor’s office resources to ensure you have a confident understanding of what you’re paying for.

What happens after identifying errors to lower medical costs?

If you identify errors and bring them to the provider’s attention, you can expect medical bill debt relief. They’ll send a revised bill showing the new balance. The new statement will reflect the amount you’ll need to pay to avoid medical collections.

3 Ways to Lower Medical Debt in Collections

3. Lower Medical Bills by Negotiating a Settlement

Negotiating medical bills in collections is a great way to reduce the total amount owed on a medical account. Once the provider has placed your account with a third-party agency, you may have an easier time negotiating. Negotiation is common for debt collection agencies, whereas medical billing departments are more likely to explore payment plans or other balance in full options.

How do you negotiate medical debt collections?

If you want to negotiate a medical bill in collections, you’ve got two main options: negotiate a lump sum settlement, or make a payment plan. Your financial situation will determine which approach is best for you.

Settling medical debt with a lump sum payment

You will usually get the best deal if you can offer a lump sum settlement to resolve the account.

Debt collectors prefer lump-sum settlements because the account is satisfied, and they can move on and focus on the next debt. These can be significant benefits for you, too! However, this can be difficult depending on the size of the debt.

If you can manage a lump sum settlement of your medical debt, this is the way to go.

Settling medical debt with a payment plan.

Another option to save money on medical debt collections is negotiating a monthly payment plan toward a settlement.

The concept is the same: you pay less than the total balance owed. The only difference between this and the lump sum approach is that you make payments toward the medical debt settlement each month.

When speaking with the medical debt collectors, you will want to share your financial hardship and know in advance what kind of monthly payment arrangements you can afford.

A few suggestions for medical debt settlement.

There are a few suggestions to keep in mind when trying to reduce medical bills through debt settlement.

  • Don’t overcommit and leave yourself without enough money for your other bills.
  • Avoid using a credit card or personal loan to pay your medical debt; medical debt is generally non-interest-bearing, so you don’t want to replace an interest-free debt with high-interest credit card debt.
  • Get any medical debt settlement arrangement in writing.

How much should you offer to settle medical bills?

The amount you offer for a settlement will depend on your financial situation and the size of the debt. The more you can offer, the better chance you will get the debt collector to accept your offer. If you have a legitimate hardship, share it with the collector. Make a case for why they should consider taking less than the full amount.

Common hardships include:

  • Loss of income
  • Death of a family member
  • Unexpected medical expenses
  • Unexpected increase in living expenses

Whatever the situation is, try to be clear without oversharing. Remember, collectors can use anything you say to collect on the debt, so sharing too much can work against you. For example, it can help to tell them that your employer cut your hours at work, but you don’t necessarily want to share where you work or your supervisor’s name. This “extra” information could make it easier for them to use scare tactics in the future or to garnish wages if they were to file a medical debt collection lawsuit.

Simply state what you can without making it too easy for them to use this against you in the future.

Another factor is how much you owe. For example, if you have a large medical bill, they might realize that you have little chance of repaying the entire debt. Therefore, you might negotiate a better percentage when dealing with large medical accounts since there is more to gain (and lose!).

A reasonable end goal for a settlement might be 50-75% of the amount owed. If your hardship is significant, start significantly lower. At the end of the day, if you reach an affordable deal and are satisfied with the outcome, you’ve been successful.

3 Ways to Lower Medical Debt in Collections

Medical bills in collections and your credit report.

There has long been debate about whether or not medical expenses should affect your credit score at all.

After all, it’s not a financial failure to fall ill.

Alas, medical debt does appear on your credit report even though it isn’t a loan and there is no financial institution involved. Medical debts are only reported to the credit bureaus if it falls behind. So, making a payment plan or paying the medical bill in full will keep the account from popping up on your credit reports.

A recent study from debt.com shows that 56% of Americans have medical debt, and 46% have medical debt in collections. When this happens, your score drops, and you may have a more challenging time qualifying for financing. The lower credit score might not stop you from qualifying, but you may have a higher interest rate on your loans as a result.

Medical debt is treated differently than other debts on your credit report.

The major credit bureaus treat medical debt differently than other types of consumer debt.

The primary difference? A grace period.

Unpaid medical bills will not appear on your credit report for 180 days after the debt goes to collections. The 180 day grace period for medical debt allows you time to deal with discrepancies between your healthcare provider and your insurance company. Sometimes, seeing the remark on your credit report may be the first time you learn you owe the debt, making this grace period very helpful.

Should you work with a debt settlement attorney to settle medical debt?

Often, yes!

A good debt settlement lawyer will know the ins and outs of unpaid medical debt, be able to work your deal specifically with your situation in mind, and ensure that you are aware of all the best options available to you. Here at National Legal Center, our team can put together a plan for you that considers all of your debt, such as credit cards, personal loans, and more. Since they can focus beyond just the medical expenses, you’ll have a plan of action to better your overall situation.

Beyond that, a debt settlement attorney can take action against a debt collector violating your rights. Sometimes this can even result in you receiving monetary damages.

Your debt settlement attorney doesn’t just want to get you a great deal. They work hard to protect your rights and maximize your chances of success.

Even if it seems like your options are limited, a skilled debt settlement attorney can review your situation and figure out how best to resolve your debts and show you the best way forward.

Benefits of a debt settlement attorney over a debt settlement company.

For-profit debt settlement companies may also offer to assist with medical bills. However, there are a few significant differences between debt settlement companies and debt settlement attorneys.

The first is that debt settlement companies cannot offer legal advice. Medical debt collection lawsuits are very common! It is best to have an attorney who can provide legal guidance through what can be a frightening legal situation.

Also, debt settlement companies cannot take action against debt collectors who violate your rights.

Lastly, the fees charged by a debt settlement company tend to mirror the amount charged by debt settlement attorneys. So, why pay the same amount without the ability to receive legal advice or have legal representation for your medical debt and credit report errors?

Get the legal representation you deserve. Complete the form on this page to speak with a representative of National Legal Center about your medical debt today.

What happens after settling your medical debts?

After you have fully paid your medical debt settlement, the account should appear on your credit reports as “settled in full” within 30-60 days. While having the account reported as settled in full is considered a negative remark, it is far better than having an unpaid collection account.

Medical collections will remain on your credit reports for up to seven years from the original delinquency date.

In some cases, the collector may choose to remove the remark from your credit reports. Or, if something seems wrong, you can dispute inaccurate information with each of the three credit bureaus to ensure your credit reports only contain accurate and verifiable information.

What is National Legal Center?

The Law Office of Fox, Kohler & Associates, PLLC, does business as National Legal Center. We are a law firm with a philosophy rooted in fostering strong client relationships.

Our approach is simple: we believe we cannot effectively assess the needs of our clients until we get to know them.

Our clients come to us in times of severe financial hardship and stress. Whether you need help with medical debts you thought would be covered by a health insurance company, unmanageable credit card debt, or debt collection harassment, we’re here to help you #standuptodebt.

We respond with sensitivity and compassion and pride ourselves on being straightforward with our clients—every time.

Consumer protection attorneys can help with medical bills in collections.

The professional legal team at National Legal Center can help you resolve medical collections.

We’ll help you obtain a free credit report, review all collection accounts, and create a plan of action to deal with your debt situation. In addition, we can share information on the impact on your credit score, take action against illegal collection practices, and do it all with affordable monthly payments at the forefront of our strategy for you.

Complete the form below to #standuptodebt with National Legal Center today!

Struggling with debt? There ARE options. Request a free consultation today!

6 Ways to Take Control of Your Credit in 2022

6 Ways to Take Control of Your Credit in 2022

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As we move into the New Year, many of us are looking for ways to improve our lives. One area where many people could use some help is their credit score. Your credit score reflects your financial health and can affect everything from your ability to get a loan to the interest rate offered on a mortgage. Fortunately, there are several ways to take control of your credit in 2022 and improve your credit score.

Last week we explored the resolution to become debt free in 2022.

This week, we turn our eye to taking control of credit in the year ahead.

Let’s begin by looking at guidance offered by Attorney John Farrell, head of National Legal Center’s Credit Correction Division.

Building a Good Credit Foundation

“A key component to having good credit is to have “positive” open accounts with a sustained usage and payment history. Ironically, as we head into 2022, many individuals who have worked on getting negative items off their consumer credit report fail to realize the need to re-establish their credit and lay the solid foundation necessary for building a positive credit file. At one point, the main focus for many of us was the collection accounts or other derogatory items reporting on our credit. In an effort to improve our credit, we disputed the incorrect information with the credit bureaus and creditors, or it “fell off” the credit report over time.

Now that they are gone, we moved on with our life. However, we failed to focus on the rebuilding phase of our credit rating. Improving our credit is not simply removing the bad stuff. We must establish our credit foundation similar to when we began this journey many years ago. However, this process must be done methodically and gradually for many reasons. The old adage that “Rome was not built in a day” also applies to rebuilding one’s credit.

At first, one may consider applying for a personal loan or a credit building account now offered at many banks and credit providers. Others can take the traditional approach of applying for a credit card. Whatever one decides, we must be patient and not open too much credit at one time. Doing this can be counterproductive and lead the individual to incur additional debt that they may not be able to pay back thereby, creating a vicious cycle of debt, collections, and bad credit. The truth of the matter is that most of us need credit in order to operate in our financial society, but it must be done with knowledge and perseverance to see results and to enjoy the benefits of having a positive credit rating.”

Attorney John Farrell, January 2022

As we see from Attorney Farrell, improving a credit score boils down to two things:

  • Reducing the negative
  • Improving the positive

Let’s take a look at several ways you can achieve those two things and improve your credit score in the New Year.

Improving the Positive

You have a few options when it comes to improving the positive side of credit.

Before considering these approaches, ensure they fit into your big-picture financial plan. You don’t want to set yourself up for trouble by opening a line of credit you aren’t prepared to handle responsibly. Likewise, you don’t want to make qualifying for a home loan difficult by having too many lines of credit added to your credit profile recently. These are sound suggestions, but everything is relative and will hinge on your specific needs, goals, and circumstances.

Increase Credit Limits to Improve Credit

One of the biggest factors impacting your credit score is how much outstanding debt you have on all of your credit cards. One way to improve that factor is to increase your maximum available credit on some—or all—of the accounts, you hold by asking card issuers for increased limits. As long as you don’t go overboard and apply for too many new accounts in a short time, asking your creditors to increase your credit limits can be an effective way to improve your credit score in the New Year.

Leverage Trust as an Authorized User

Credit is trust. Sometimes, a lender is not prepared to trust you based on your credit history. In this situation, it can be helpful to leverage the trust of a family member or friend by being added as an authorized user on their credit card. Being added to the account will associate the entire credit history (good and bad) of the line of credit to your credit profile and can significantly boost the report of someone with a thin credit report.

Simply being added as an authorized user on someone else’s account can raise your credit score, but there are caveats to keep in mind.

As an authorized user, the entire account’s past and future credit activity will reflect on your credit report. If that account is not paid responsibly, then your credit score could suffer as a result. That’s why you need to ensure you’re added to accounts with individuals who have an excellent payment history.

Also, you don’t want to use this as a way to trick lenders or the credit scoring system. That’s not the point. The point is to leverage the trust of a friend or family to show the lender that they, too, can trust you.

There’s nothing wrong with taking steps to attempt to improve your credit score. Just make sure everyone involved understands what they are doing, why it will (or won’t) help them achieve their financial goals, and that the sole purpose of being added isn’t for the goal of increasing your credit score. In reality, the cardholder should be entrusting the new authorized user to use the line of credit, even if there are restrictions to the amount or types of purchases they allow.

Reducing the Negative

Now that we’ve explored ways to improve the positive side of your credit score let’s review how to reduce the impact of negative remarks on your credit report.

Again, the same disclaimer applies: these are broad strategies. Again, consider your specific financial goals and circumstances to determine if an approach is right for you.

Dispute Inaccurate Credit Information

One of the most effective ways to improve your credit score is to ensure the information on your credit report is correct and verifiable.

Per the Fair Credit Reporting Act, every credit report should only contain accurate information.

Errors can range from minor inaccuracies like misspelling your name or address to major problems like an account balance showing unpaid when you resolved it years ago.

Sometimes, you can fix these errors simply by contacting the credit reporting agency in question and asking them to update your report. In other situations, though, you may benefit from getting help from an attorney familiar with debt and credit matters. It will all depend on the complexity and severity of the situation.

Dispute Unverifiable Credit Information

According to Experian’s interpretation of the Fair Credit Reporting Act (FCRA), “Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information.” Our consumer rights law firm helps people overcome debt and credit issues, and we share this interpretation.

Not only does the information contained in your credit report need to be accurate, but the information furnished needs to be capable of proving that it is accurate. If they can’t prove that something is true, it shouldn’t be on the report in the first place.

Now, this isn’t to say that you should go and dispute every negative item as that would be frivolous. However, suppose you have reason to believe that information on your credit report is inaccurate. In that case, you should consider disputing it to be sure it can be verified by whoever is reporting it.

Lower Outstanding Debt

Whether it’s credit cards or student loans, your outstanding debt is another factor that impacts your credit score. The amount of debt you carry compared to the amount of credit extended to you makes up 30% of your credit score. So, improving this area can greatly impact your overall credit profile.

If you can lower the amount of money you owe to creditors, this will help improve your credit score and potentially open up more doors for future borrowing if needed.

Plus, it’s just an all-around good idea to reduce the amount of debt owed, especially if you’ve fallen behind on credit cards in the past.

Deal with Collections

One of the biggest factors that can negatively impact your credit score is the presence of collections accounts.

If you have any negative or unpaid collection accounts on your credit report, it’s time to start taking control and getting rid of them. It may take some work—and it probably won’t happen overnight—but getting rid of these items will improve your credit score as well as increase your financial health overall.

Do you need help dealing with collection accounts? The debt settlement attorneys at National Legal Center are here and ready to help you resolve your debt as quickly and affordably as possible. Reach out to us today for a free case evaluation.

Why You Should Hire an FCRA Attorney

The benefit of hiring an attorney specializing in debt and credit law is that they are familiar with the Fair Credit Reporting Act. They know:

  • what specific reasons are necessary for items to be deleted or updated with a consumer reporting agency;
  • what creditors and collection agencies tend to report incorrect information;
  • whether a violation is actionable and worth pursuing FCRA litigation.

Some violations of the FCRA are worth pursuing beyond a simple dispute of the remark. In some cases, you might find an FCRA attorney can help pursue damages against the company reporting the incorrect information. If you believe you have inaccurate information on your credit report that has made it hard for you to qualify for the credit, reach out to us for a free evaluation of your case.

We hope that this article has been helpful and provides you with some useful tips on taking control of your credit in the New Year. Remember, it won’t be easy, but it is definitely worth it in the end. Good luck!

Struggling with debt? Use the form below to get in touch with us.

Resolve to Become Debt Free in 2022

Resolve to Become Debt Free in 2022

With the new year upon us, many of us are looking at our current habits, considering lifestyle changes, and settling in on our New Year’s resolutions for 2022.

It seems like different trends come up every year. Still, you can always count on the big three: get in shape, improve relationships, and financial resolutions like getting out of debt in the new year.

Are you rolling into the new year swamped with debt?

In this article, you’ll learn how to be debt-free in 2022. We’ll share some simple tips to organize your credit cards and loans along with methods to consider for paying down your debt.

Take Inventory

The first step to becoming debt-free is assessing your entire financial situation.

Whether it’s credit cards, personal loans, student debt, a mortgage, or anything in between–if you don’t know where your money goes, you can’t plan for a better future.

Here’s are your steps to plan for the long run.

Write down all of your debts.

The best way to understand your personal finances is to write them down. List out credit card debt and other loans. This isn’t a full 2022 budget, but rather an overview specifically focused on what you owe.

You’ll be shuffling the accounts around shortly, so your best bet will be to do this on your computer, ideally in an excel file or Google Sheet.

Prioritize debt

Now that you’ve listed your debts, it’s time to prioritize. The order in which you tackle your accounts will largely come down to your debt situation and personal goals.

Let’s look at three particular situations. First, see which category best describes you. Then, consider the suggested approach to resolving debt.

Scenario 1: Current and able to pay extra

This one is for you if you are current on your accounts, have an emergency fund in your savings accounts, and can pay more than your minimum monthly payments.

Say you want to make progress in resolving your debt more quickly and efficiently. Wonderful! It will be best to prioritize based on the interest rate to save the most money possible.

Prioritizing your debt this way is known as the avalanche method.

You put everything you can toward the account with the highest interest rate regardless of the balance. Meanwhile, you only make your minimum payments on the other accounts. Give yourself a high five once you’ve completely paid off the account with the highest interest rate. It’s so important to celebrate those wins!

Next, you take everything you were paying on it and apply all that to the debt with the next highest rate, and so on.

Scenario 2: Current, but just barely

If you are current on debt but barely so and need to make a change, you may benefit from paying off debt with the smallest balances first.

Prioritizing in this way is known as the snowball method.

You’ll list all debt from smallest to largest ignoring the interest rates. You will make minimum payments of all listed debt except the smallest. You’re going to throw more money at that one than any others.

Work a side hustle or overtime, sell items from around the house, ask for a salary increase. Do whatever you can to raise some cash. Then, put that “extra” money toward the account with the smallest balance.

Once that’s paid off, take all you were paying toward the first account and put it toward the next one on the list.

The snowball method is similar to the avalanche method because it focuses on making large strides toward debt freedom rather than taking small steps. However, you tend to see progress faster when you work from smallest to largest. Seeing wins early on is incredibly motivating and helps you maintain your dedication.

Scenario 3: Behind on accounts, the struggle is real

If you are behind on debt, don’t despair! You’ve already taken a step in the right direction by resolving to get out of debt in 2022.

When you’re behind on your debts, you’ll want to consider the above snowball method. However, if that proves out of reach, you may find it necessary to get professional help.

You’ve got a bit of a hill to climb to make your snowball, but depending on just how far delinquent your accounts have fallen, it may be solvable on your own.

Suppose your income won’t support paying off debt that has fallen behind and grown due to late fees and wild interest rates. In that case, it’s time to consider professional help.

Professional help may come in a few different forms, such as a debt management plan or through debt settlement, ideally with the assistance of a debt relief attorney.

National Legal Center is a consumer rights law firm committed to helping good people overcome bad debt. If you’re behind on debt going into the new year, request a free consultation to see if a debt settlement attorney can help you put your debt behind you once and for all.

Review your budget

Now that you’ve prioritized your accounts and have a plan of how to pay off debt in 2022, it’s time to dive into the details.

It’s crucial that you know exactly what you can afford to pay each month toward debt and that your debt repayment plan is achievable. You can only do this by understanding what is coming in and what is going out.

Having that knowledge is a vital step toward debt freedom in 2022.

Review and update your budget at the turn of the year. This annual check-in will allow you to make sure that your budget reflects your priorities, especially if you’ve made a new financial resolution.

During this review, you should:

  • update your income;
  • add any new expenses;
  • calculate your net worth;
  • see what’s changed from last year;
  • identify expenses you’re willing to cut.

Use this as an opportunity for reflection on your spending habits and consider making adjustments.

Don’t have a budget?

If you don’t have a budget, now’s the time!

A budget is a plan for how to spend your money. It’s a list of the money available to you each month divided up into categories, like debt repayment or groceries. Once you’ve established your budget, you can see where you might need to make some adjustments and be more mindful of how and why you’re spending. A household may benefit from a family-level budget. This way, everyone involved understands the household’s financial goals for the new year and expectations for each person.

How to Save Money in 2022

Once you’ve created your budget, you can begin to identify opportunities to save money each month. You might find more ways than you expect to lower expenses and resolve debt faster.

In a time of unyielding inflation, it can be hard to cut expenses enough to save even a few hundred dollars each month. However, several monthly expenses are good to look at for spending less in the long run.

Cable

Cable services are generally far more expensive than they need to be. So instead, consider turning to streaming services like Netflix, Disney Plus, or Hulu. There might be a feeling of sacrifice here, but the chances are good that you’ll find something new and enjoyable to watch.

Insurance

No matter the type, insurance is a big expense.

You might be able to save some money by considering all of your options carefully before renewing old plans or signing up for new ones. Speak with an insurance agent and share the specifics about your situation.

To dehumanize the whole process, insurance companies have an “appetite” for different risk profiles (i.e., people). So you might find an opportunity for savings without even reducing your coverage. Better for you to have more money in your savings account than on your insurance bill.

Eating Out

Eating out can quickly destroy a budget. But, when you’re trying to cut costs, this is a big one.

The best way to minimize the sacrifice of reducing how often you eat out is by preparing good food at home! Pick up a cookbook from the library or scour the internet for low-cost meals. Make an adventure out of learning to cook on a budget in the new year!

Impulse Purchases

Impulse purchases are one of the most frustrating ways to lose money because it’s hard to figure out where the money is going. Sometimes we don’t have any idea that we are spending a significant amount of money on a certain item or purchase over the past few weeks. Ahem, coffee.

If you stick to a budget and include an item, it’s no longer an impulse buy. There’s nothing wrong with any particular budget item. Just make sure your purchases are intentional and not impulsive.

How to Increase Your Income in 2022

Whether you’re looking for a traditional job or some way to make money on the side, getting creative with your options doesn’t have to be difficult.

There are more opportunities out there than ever to make some extra cash.

Consider some of these options:

  • Lyft, Uber, or Doordash
  • ThredUp (sell old clothes)
  • Restaurant jobs (bus tables, wash dishes)
  • Mechanical Turk work on Amazon
  • Deliver food with DoorDash
  • Freelance on Upwork or Fiverr

Use the extra money you make to pay off debt in 2022.

Make your credit card debt easier to pay off.

If you need help with debt, there are options.

We’ll review a few of the more common approaches to resolving credit card debt, with and without an attorney.

Debt Management Plans

Debt management plans (DMPs) can be an effective debt relief option in the right situation. On this service, a non-profit credit counseling agency makes arrangements to reduce the interest rates on your credit cards. You make one payment each month to the credit counseling agency. From there, they make payments to your creditors on your behalf.

In many ways, credit counseling agencies provide a similar service to debt consolidation. The difference is that it does not require a good credit score to qualify for the personal loan used in a consolidation.

A debt management plan can be an effective strategy for someone who needs a helping hand. For example, if you are current on your credit card payments but want to see more progress more quickly, a DMP can be an excellent way to go.

Complete the form on this page to request a free consultation to discuss your situation with our debt relief law firm. If our services aren’t the right fit for you, we’ll be glad to connect you with a reputable credit counselor.

Debt Settlement Attorney

Suppose you are behind on your accounts or need a bit more help than you can get through a debt management plan. In that case, you should speak with a debt settlement lawyer.

Debt relief attorneys have the knowledge and skills to deal with delinquent debt, collection accounts, creditor lawsuits, and more.

A debt relief attorney can help you determine if debt settlement is right for you. If so, they will also guide you through the entire debt settlement process.

Contact us today at 1-800-728-5285 or complete the form on this page to begin pursuing debt settlement with the oversight of a licensed attorney.

Bankruptcy

If debt settlement doesn’t seem like the right debt relief option, you may decide to consider filing for bankruptcy. Though usually a last resort, bankruptcy is an option to consider when you need drastic help with your financial situation.

Filing bankruptcy does have drawbacks, but so do all debt relief options. We suggest speaking with a bankruptcy attorney to understand the option fully.

Not all attorneys at National Legal Center practice bankruptcy, but some do. Give us a call to discuss your situation. If we can’t help you, we’ll do our best to point you in the right direction.

Other Financial Resolutions for 2022

Maybe you aren’t resolving to pay off your debt in 2022 but want to make some sort of financial resolution for the new year. Here are some other financial resolutions to consider in the new year, with resources to get you headed in the right direction.

Increase retirement contributions

Gain control of your credit report

Establish an emergency fund

Fund a Roth IRA

Learn about investments

Become a pro-budgeter

Whatever your financial resolution may be, the entire team at National Legal Center wishes you success, wealth, and health in the New Year!

Saving Money

How to Prepare for an Economic Downturn

On September 29th, 2008, the stock market crashed. The S&P 500 fell more than 12% in a single day, the most in history to that point. The immediate aftermath was terrifying: homes lost value, banks cut off lines of credit, and people struggled to find jobs. As the recession wound down five years later, a common question people had was, “how do I prepare for the next one?”

In the wake of a global pandemic, many of us have now faced “the next one.”

The long-term economic impact of the covid-19 pandemic is still unknown. Some are undoubtedly concerned that the worst has yet to come as far as the economy is concerned.

Whether that will prove to be true or not, we can’t say. However, we can provide actionable suggestions of how to prepare for an economic downturn.

What’s even better?

These suggestions will prepare you for a slump of the broad economy as well as personal setbacks like a reduction in income too.

Here are seven things you can do now to prepare for the next economic downturn.

Create a budget that you can live with.

Creating a budget is the first step toward having complete control of your finances.

The first thing to do is track all your expenses. If you’re still using a pen and paper, consider turning to technology! Send an email to National Legal Center for a free copy of our Budget Maker.

Once you have the data, categorize your expenses. Some common categories include grocery, utilities, rent or mortgage, entertainment, and transportation.

Be realistic.

Creating a budget that you can’t possibly stick to will only create more stress for you.

Next, calculate your income. Base your budget on your net income, which is what you bring home after taxes and deductions. If you’re not working a traditional job, calculate your average income over the past six months to get a realistic number to use for your budget.

A budget provides a degree of control and understanding over what comes in and what goes out. This insight will help you manage your money and be more confident amidst economic uncertainty.

Have an emergency fund.

An emergency fund is your first line of defense against an economic downturn. This is cash on hand, generally kept in a savings account.

Most financial experts suggest 3-6 months of living expenses but keep in mind that your personal living costs will likely be different. It may not be as hard as you’d expect to get to 6 months of expenses, as chances are good you have some costs that you can cut if needed.

Keep your debt in check.

Of all the expenses in your life, high-interest debt is the most damaging during an economic downturn. Even during a recession, prioritize paying off credit cards and loans, as unsecured debt eats away at your ability to save more money.

First, make a list of all your debts. Then, establish a plan to pay off your debt.

If your debt is unmanageable, it may be time to call a debt settlement attorney. The legal professionals at National Legal Center can help! Complete the form on this page to #StandUpToDebt today.

Keep your housing expenses low.

In a tough economy, most people are looking to cut costs, and housing is often one of the first places they look. Moving from renting an apartment to owning a home has long been considered part of the American Dream. But if you live somewhere with high housing expenses like New York or San Francisco, buying a house may not make sense for your bottom line.

In a world where remote work is more common than ever before, people are relocating in droves to locations that better suit their personal and financial needs.

Some cities are even willing to pay you to move to them!

If your situation allows it, consider relocating to a lower cost of living area to keep your housing expenses down.

Develop multiple income streams.

Having multiple sources of income creates a buffer of protection against a downturn in your primary source of income. A second job, selling things on Craigslist or eBay, providing tutoring services to students are some examples.

Online platforms such as Fiverr and Upwork have made finding flexible, remote work easier than ever before. The pandemic has spurred massive adoption of freelance work.

The gig-economy is booming, and there’s no sign of it slowing down.

Stay aware of what is happening in the world.

Though it’s nearly impossible to predict an economic downturn, planning ahead and staying informed about the economy is a must-do.

The news is full of stories that predict a coming downturn, so don’t go into a panic every time you see a doom-and-gloom headline. Instead, read these stories, talk with friends and family about them, and evaluate the information with a critical eye.

Keep your ear to the ground, but remember that this is just a signal. Don’t let the noise consume you. Create your financial plan, and stick to it.

Diversify your investments.

It’s hard to think about investing in stocks or real estate when struggling with credit card debt. However, if you’re at a point financially where you are investing money, consider diversifying your investments.

Don’t keep all your eggs in one basket by putting all of your money in one place.

A diverse portfolio will consist of stocks across several industries and countries, bonds, real estate (or pieces of real estate through Real Estate Investment Trusts), and more.

Take action!

So, there you have it- seven actionable ways to prepare for an economic downturn. Review this list and take any action you can. Then, over time, keep working toward the others. Taking steps to become prepared will leave you feeling more confident and secure in your financial future.

If debt has you down, we’re here to help you up. Complete the form below and #standuptodebt with National Legal Center!

 

Financial Goals

Intentional Budgeting

We know, we know. The word “budget” doesn’t evoke excitement for most of us. On the contrary, it can feel like complete drudgery to even think about streamlining our finances. Still, without putting together a personal financial plan, most people won’t be able to manage their money efficiently. But it’s much more than that! Beyond just logistic survival, money is a means to supporting the lives we choose. Intentional budgeting can help you get clear about what you really want and put you on a track to live your best life.

As with all things, budgeting is all about perspective. If you begin the process by formalizing your goals and dreams, it can be a much more exciting endeavor. It can also help you stick to your budget over time. When it comes to saving money, having a “why” on the forefront of your plan helps make sense of the importance of having a financial plan.

When you begin outlining your budget, take some time to do some real soul searching and consider what you want your life to look like in five, ten, and twenty years. Consider the kind of lifestyle you and your family want. What kind of vacations would you love to take? What charitable causes would you want to contribute to? At what age do you want to retire? Consider what it would take financially to support that.

Defining your vision for the future is the key to staying motivated to create and stick to the budget that will help you get there. In this way, your budget is simply a process of reverse engineering your dreams, which is a far more thrilling way to look at it.

Once you have your “why” in place, you can get to work on figuring out how to save for it all. No matter how difficult you feel your current financial situation is now, it can be very liberating to accept responsibility for it and know that sticking to a solid plan will, in time, get you on track towards your dreams. It’s a good time to remember that the fastest way to saving is to stop spending needlessly.

It’s a no brainer that you can’t spend more than you earn without getting into financial trouble. If you are racking up debt, put the credit cards away. Consider your vision and compare your desire to achieve those dreams versus your desire to spend now. Often, we overspend to “keep up” with others. Comparison in this way can really kill the mindset needed to save. Having that vision for the future on the forefront of your mind can help offset the desire to spend.

From there, budgeting isn’t that difficult. Figure out how much you earn first, then categorize your spending beginning with the essentials. The latter can be a very clarifying process. Consider what necessity really is and think about that through the lens of your desire to reach your goals. This is a great way to flush out what is truly essential to you. Housing (rent or mortgage), for example, may be a true necessity, but you may find that paying to own and maintain a vehicle isn’t. Perhaps your motivation to execute your vision for the future exceeds your desire to own a car. Then maybe you reduce your cost in that category by buying a bus pass instead. This line of thinking is essential in figuring out far you are willing to go to reducing expenses.

As you go through each spending category, apply the tactic of considering your goals. You’ll find that, even though many categories are “essential”, there are large disparities between what we want and what we need. Be reasonable but firm in the spending limits for each category. Remember, you can always adjust up (or set out to earn more). Over time, you should be able to reduce your spending in each category by refining the process of what you can do without. This, along with remaining smart about optimizing savings (from coupons to refinancing) are surefire ways to succeed.

When you consider the future you want, you simply must consider what present actions will get you there. Caring for your finances through budgeting is just a challenge to live your best life. So, dream big and start getting serious about saving now!

Senior Savings

4 Money-Saving Tips for Seniors That Aren’t a Drag

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Many senior citizens are looking for ways to save money without feeling like they’re missing out on the things that make life worth living. We aren’t dishing out the same-old “senior discount days at the grocery store,” you already know that! There are plenty of ways that seniors can save money without giving up on what they love. So forget sacrificing to save— we’ve curated tips that will bring more joy and fulfillment to your world.

Here are four (fun!) money-saving tips for senior citizens.

Start an indoor garden

Who doesn’t love fresh veggies right out of the garden? Maybe you don’t have a yard or aren’t physically up for traditional gardening. The good news is that there are plenty of vegetables that can be grown indoors!

A few examples of vegetables that can be grown indoors in an indoor garden are:

  • Carrots
  • Potatoes
  • Hot Peppers
  • Leafy Salad Greens

If you don’t have time for a full-fledged indoor garden, consider having a few potted herbs on your windowsill. Basil is one of the easiest herbs to grow, and it’s great for use in pasta dishes. Lemon balm is another herb that is both tasty and beneficial. One perk that makes it especially interesting is that it can help with symptoms of depression.

Discover free entertainment for seniors

Sure, senior centers can be a great place to socialize with friends or participate in free senior citizen activities, but sometimes you want to get out of the same-old-same-old. Fortunately, there are free entertainment opportunities aplenty if you know where to look.

A quick Google search of “Free activities for seniors near me” will give you a great list. Or, local publications and newspapers will have these laid out as well.

Also, consider looking on meetup.com. These group activities generally meet in public places and connect you with individuals that share similar interests and hobbies.

 

Ditch the landline

Many senior citizens don’t need a landline when they can use their cell phones or Internet service to talk to people. Ditching the landline saves money and helps seniors live a more low-maintenance lifestyle.

I know what you’re probably thinking… where’s the fun in this?

I promised these tips would be fun and wouldn’t involve sacrificing things you enjoy. How on Earth could this one be fun?

Do you want to know a great added benefit of getting rid of your landline?

There are more laws restricting telemarketing calls to cell phones.

The calls still come through, but not nearly as many as on landlines! Plus, if they are calling on your cellphone and you are on the Do-Not-Call list, our consumer rights law firm may even be able to help you take action against them. I don’t know about you, but I find the potential of getting paid for a telemarketer’s willful ignorance of the law to be rather fun.

Hack your library… kindly.

Many libraries have many of the same perks as senior centers, but for free! In addition, they have senior citizen activities, senior discounts, events for the holidays, book signings, and social gatherings. Libraries also have a vast array of physical items to borrow if you find yourself wanting an activity that you don’t have time to plan. You can find everything from expected items like books, CDs, and DVDs to more surprising things like board games, language learning programs, and puzzles.

I’ve even found that my library offers free day passes to popular (and expensive!) amusement parks and zoos in our area. Who doesn’t like getting out to enjoy the local area for free?Struggling with debt?

If you’re struggling with credit card debt, it’s important to know there are special strategies for seniors to deal with debt. If you feel like there’s no way out, we want to help. We help people of all ages, but seniors, the disabled, and those on a fixed income have protections that aren’t always available to the working population.

National Legal Center helps people struggling with debt and credit issues #StandUpToDebt so they can stop worrying about debt and get on with their life! Call us at 800-728-5285 or complete the form below for a free consultation. You’ll be glad you did!

Credit Card Debt

The Benefits of Paying More Than Your Minimum Credit Card Payment

When financial times are tough and money is tight, paying only the minimum payment on your credit card is tempting. You may be shocked to find out how impactful the benefits of doing just that can be. Here are our top 3 reasons to budget in paying more than the minimum on your credit cards:

  • You can save a ton. Interest has a compounding effect that makes balances quickly increase. Depending on the interest rate and how much more you pay monthly, you could save hundreds – even thousands – by paying more than the minimum. Even paying an extra $1,000 (around $80/month) in a year will bring you ahead by between $150-$300 (depending on interest rate). That is real money back in your pocket.
  • You will keep your credit healthy. According to Experian, 30% of how your credit score is calculated depends on card utilization. Your utilization is how much of your credit limit you are using (a ratio of your balance to your limit). Because so much of your minimum payment goes to interest, you will not make a swift dent to the balance. Paying more than the minimum can help you reduce the balance faster, thus reducing your overall utilization and positivity impacting your credit. This, along with other good financial habits (like making your payments on time) will contribute heavily to your good credit.
  • Emergencies happen. It is best to pay for them with cash savings if you have it. But situations may not always allow for that. Having the maximum amount of available credit waiting in the event of an emergency is always a safe bet. Paying more than the minimum is a great way to ensure this over time. Not only will it help your credit, but paying down your balance consistently will add to the amount you have available to spend on surprise repairs and other emergencies.

Managing your credit cards can be challenging at times, but being financially responsible mitigates stress. The outcome is absolutely worth the challenge.

Trust a debt professional and keep it simple.

5 Times To Call A Debt Settlement Attorney

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Debt settlement lawyers are your best friend when you’re deep in debt.

These professionals help with debt negotiation and ensure that creditors know they can’t take advantage of you. We’re going to review:Call for help from a debt settlement attorney

  • When you should hire a debt settlement attorney
  • Why it is a better option than using a debt settlement company
  • Essential things to consider along the way

Let’s go!

 

What is a debt settlement attorney?

Debt settlement attorneys have a great understanding of contract law and the power of negotiations. They may directly negotiate on your behalf or have professional non-attorney negotiators who assist them in negotiating your credit card debt.

The team at National Legal Center will review many elements of your financial situation and create a plan of action. They may consider factors like your income, assets, who the creditors are, the state you reside in, and more. Knowledge of consumer rights laws puts attorneys a step ahead of the game in knowing what to look for. For example, they’ll know what a debt collector can and cannot do when collecting on a delinquent account.

When you’re falling behind on your accounts, hiring one of these professionals is the best way to ensure that collectors cannot take advantage of you.

 

Debt settlement versus bankruptcy

Debt settlement is often the preferred option, particularly when it comes to credit card debt. Many creditors and collection agencies have a history of being willing to settle debt for less than the full amount owed. Given the long-lasting implications of bankruptcy, debt settlements may be the better option.

However, bankruptcy has a place, and sometimes it makes sense.

By speaking with a debt settlement law firm, you’ll be able to get a confident understanding of your options.

 

Debt settlement & your credit

When you’re trying to settle outstanding debt, the first thing that comes up is how it will affect your credit rating. A debt relief attorney has a good understanding of this and should provide insight into the implications of your options.

Nearly any action you take on your accounts will affect your credit score. The same goes for bankruptcy and debt consolidation, too.

When you cannot make the minimum payments on your credit cards, your credit will be affected. An impact on your score is unavoidable when you fall delinquent, don’t be surprised when you see that happen.

Your credit score is important, and we can help improve your credit report. But, there are more significant issues to tend to first. Above all, you need a way to deal with this unaffordable debt. A plan created by National Legal Center will provide you with a way to deal with all of your debts.

 

When It’s Time To Call A Debt Settlement Attorney

Even the savviest of DIY’ers will want to know their boundaries. Take replacing your roof, for instance. Sure, you might be able to do it yourself. But, you also might not.

You have to consider the roof, your tools, if you have enough money to buy the materials, the time, and more. There are so many things to consider when replacing a roof. Then, what if it leaks? What if you had the best of intentions, planned as best you could, and used the right tools, yet somewhere along the line, you goofed. Now you have a leaky roof that can potentially cause further damages, possibly even mold.

And that’s with something relatively straightforward compared to negotiating with creditors and collectors!

When you face settlement negotiations, you would be wise to hire professionals to handle the tough stuff. Keep it simple.

The best thing about working with a law firm like National Legal Center? Professionals who have had years of practice dealing with creditors and collection agencies will assist you. They will be able to make sure all the t’s are crossed, and i’s are dotted, so a collector doesn’t try to come back after you in the future.

An attorney can help you navigate the legal complexities that might come up along the way, too. For example, what if you receive a summons? What if a collector offers a great deal, but you don’t have enough money to take the deal? What if the collector says they will not settle? These are the situations that come up regularly when accounts are delinquent on unsecured debt. You’ll be grateful to know who to reach out to for legal advice when these things come up!

 

Are debt settlement companies less expensive than debt settlement attorneys?

Surprisingly, debt settlement lawyer fees are often comparable in pricing to a debt settlement company.

Even though they generally charge about the same amount, there are so many things that a debt settlement company cannot do for their clients. Because a debt settlement company is not a law firm, they cannot offer legal advice. They cannot provide direct answers to your questions about lawsuits while settling debt. They cannot discuss an account’s statute of limitations. They cannot advise you on limiting your risks to protect yourself in the event of a credit card lawsuit.

The attorney-client relationship is incredibly valuable to consumers. A part of this relationship includes diving a bit deeper than you could with a non-attorney, specifically on your legal risks. Additionally, you receive a level of confidentiality that the attorney-client relationship protects. The level of privacy and legal strategy simply cannot be provided by a debt settlement company. We’ll be upfront and transparent about everything from the tax consequences of the settlement process to the risks and rewards.

So, while debt settlement companies charge about the same as a debt settlement law firm, you get tremendously more value from working with an attorney who can speak to all of these matters.

Okay, now that we’ve covered all the groundwork, on with the show!

 

It’s Time To Call A Debt Settlement Attorney When…

Your are facing an overwhelming amount of unsecured debt.

Suppose you have 1 or 2 delinquent accounts that are smaller, or your total debts is mostly comprised of medical bills or is under $10,000. In that case, it probably doesn’t make sense to hire an attorney for debt relief. A debt management plan may be more suitable when you need a bit of a helping hand to lower your interest rates or monthly payments. The larger your balances are, the greater your opportunity for savings becomes. When you factor in legal fees and other considerations, it is generally suggested that you only consider hiring a lawyer for debt settlement work if you owe more than $10,000 in unsecured debt.

 

You know you cannot meet your minimum payments.

If you are making minimum payments each month and are seeing progress, stay the course! We want you to become debt-free with as few drawbacks as possible. An affordable payment plan may take a long time, but traditional repayment will help avoid late fees while you pay the balances you owe.

Stand Up To Overwhelming Debt.

Are you struggling to make those minimum payments and falling further into crushing debt? Or maybe you received a collection letter with an offer you wished you could take, but just can’t afford it. If so, it’s time to consider all available options for dealing with the situation. You can request help from a lawyer to settle your accounts as a means to pay them down in a more affordable manner.

Pay the entire debt if you can. If you cannot, then speak with a case analyst at National Legal Center who has extensive experience with the options that are available.

 

You consider bankruptcy for debt relief.

Avoid Bankruptcy with debt settlement
 

Many of our clients are surprised to learn that they do not need to file bankruptcy to deal with overwhelming debt. There are many options to consider. For example, you may negotiate a settlement, request the collector validate the debt, or take another approach that is the right solution for you.

Are you considering a bankruptcy filing but would prefer to avoid it? If so, this is an excellent time to consider hiring a debt relief attorney. To be confident with whatever decision you choose, it is a good idea to consult with a bankruptcy attorney, too. This way, you can have a complete understanding of your available options.

Our firm employs many attorneys who practice bankruptcy. If not, we know many bankruptcy attorneys who offer a free consultation. We’ll be glad to make the connection.

 

You are facing a debt collection lawsuit.

Attorney for credit card lawsuit

Debt collectors make a lot of wild claims. Sometimes it can be hard to tell when they’re trying to scare you and when they really mean business.

Sometimes creditors will file a lawsuit on unsecured debts. Unfortunately, this can sometimes push consumers right into filing bankruptcy prematurely. Let’s face it—lawsuits are scary! You DO have options, though.

If you had to stop making payments on your debt and are facing a debt collection lawsuit, National Legal Center is here to help. We can provide legal information about the risks associated with the lawsuit. Even if you don’t have a lump sum to negotiate with them right now, we are very familiar with settling debts even after they’ve gone to a lawsuit.

It can be easy to focus solely on the lawsuit, but it is essential to remember your other debts, too. We’ll help you create a plan of action to deal with all of your creditors. Time is of the essence with debt collection lawsuits, though, so please connect with us right away to discuss the details of your case.

 

You’re worried about wage garnishment.

Attorney for credit card garnishment

When a creditor obtains a judgment against you, they may attempt to garnish your wages. In addition to wage garnishment, they can also try to levy money from your bank account, place a lien against your real estate, or seize personal assets. If a judgment has been entered against you, don’t ignore it. Speak with the professionals at National Legal to come up with a plan of action to deal with the matter.

 

Need professional help? Talk to a debt settlement lawyer.

These situations are certainly difficult. There is hope though!

 

When you’re struggling to keep up with payments, it can be challenging to determine which actions you should take. If you’re wondering “is debt settlement right for me?”, National Legal Center is ready to help. Contact us today at 800-728-5285, or complete the short form on this page for a free consultation. Let’s talk about your debt relief options. We’re ready to help you Stand Up To Debt!

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The Law Office of Fox, Kohler & Associates, PLLC | dba National Legal Center aka NLC | employs one or more licensed attorneys in:

AL, AR, AZ, CA, CO, CT, DC, FL, GA, IA, IL, IN, KY, LA, MA, MD, ME, MI, MN, MO, NH, NJ, NY, OH, OK, PA, RI, SC, TN, TX, VA, VT, WI

National Legal Center is a tradename of the Law Offices of Fox, Kohler & Associates, PLLC, a NH law firm, PO Box 835, Candia, NH 03034. Rosanna Fox is admitted to practice law in NH, Arthur Kohler is admitted in MA. Results may vary based on the circumstances of your case. Not available in all states. This is Attorney Advertising Material and is not intended as legal advice.