Debt Negotiation Debt Negotiation is reaching an agreement with your creditor to pay less than the amount owed. Debt Negotiation works by negotiating a payment for less than the full balance due to the creditor. Debt Negotiation is NOT Debt Consolidation where a new loan amount is obtained for the full amount, with one payment going forward. Debt Negotiation is NOT Credit Counseling where your interest rate or monthly payment is reduced for period of time. We are a Law Firm – Not a Debt Settlement Company We are not a debt settlement company that holds your funds during the settlement process or charges high fees on a monthly basis. We are a law firm that speaks directly with collection companies, law firms and creditors to reach an agreement that saves you money. After years of experience in this practice area, we are on a first name basis with collection firms throughout the state of Florida. Our relationships benefit our clients in cutting to the chase and reaching a settlement agreement. How do I stop creditor’s from calling me? There are only two ways to legally stop creditors from calling you. The Fair Debt Collection Act allows you to provide a Cease and Desist Letter. In some cases, this may prompt the creditor to take legal action since they are not able to contact you directly. The second way to stop creditors from calling you is to hire an attorney to speak with your creditors on your behalf. The first layer of debt negotiation services is to remove the burden of receiving creditor calls that contact, and in some cases, intimidating and harassing. Our office provides a limited power of attorney to your creditors so that all calls are directed to our office. Redirecting the communication line typically results in reducing your stress and increasing negotiating power. When is a good time to consider Debt Negotiation? If you cannot make a dent in your rising debt due to hardship such as loss of job, divorce, death in the family or other problem, debt negotiation is a great option. Some of our clients stopped paying their creditors prior to hiring our office for help and others come to us for assistance with making the decision to stop. Debt Negotiation is rarely an option when you are still making monthly payments to your creditors. Does Debt Negotiation hurt credit? Initially, yes, debt negotiation will initially hurt your credit. As stated, you cannot likely get a discount on debt if you are current with the creditor. However, over time, as you settle your debts, the credit reporting system will reward you. We have seen credit scores positively impacted by clients paying off debts at a discount. What does a typical settlement look like? Depending on the client’s needs and the creditor options, your settlement may be in the form a lump sum payment or in monthly payments over time. Generally speaking, the higher the debt the deeper the discount may be. We strive to obtain settlements from 50% to 80% off the principal amount due. A settlement can result from a lawsuit or judgment that has been filed against you or from a creditor that is collecting prior to taking legal action. Settlements will always be in writing and presented to you for acceptance. How does our office get compensated? Unlike debt settlement companies, we are compensated at the time of settlement. We charge a percentage of the amount we have saved you. In this way, our incentive is to reach the best possible agreement on your behalf.