Things may be wrong with you at any time and you find it hard to pay off your debts. However, if you have taken money from banks or credit card companies, you will have to pay it off. The good news is that you can find several ways to negotiate with your lenders so that you don’t pay the full amount. It is vital to understand that it may hurt your credit scores but sometimes, getting rid of the debt is more important. The debt collectors may be calling you at odd hours for money. You can get in touch with a debt collection defense Chicago before things get more complicated.
How to deal with your lender
You might feel anxious when you contact your lender. However, you must face him with a lot of courage and try to explain your situation. Some of the effective ways to do so are elaborated on below:
Have cash in your hand
One of the best strategies to negotiate with your lender is to have some cash in your hand. Without this, it will not be possible for you to convince that you are ready to pay. Moreover, if you have money, they will also understand that you are willing to pay and may not take stern actions against you.
Try to pay less than 50% of your unsecured loans
You will be amazed to know that it is possible for you to pay less than 50% of your unsecured loans. Some debts such as credit cards and personal loans can be settled easily. The lender may not charge interest rates or lower this amount. This way, you will end up paying a lesser amount than you owe. However, it is going to hurt your credit score and you will not be able to take up any loan for about seven years.
Hire an attorney
If you have a lawsuit against you because the lending company is not ready to negotiate with you, it is time to bring a lawyer into the picture. You will not be able to handle a legal lawsuit against you without an experienced and qualified lawyer. Even if after the lawsuit, negotiation and settlement are possible. Your lawyer will be able to do it on your behalf and help you get rid of your debt.
It is suggested to contact a lawyer when you start to face a financial crisis. He can guide you better on debt settlement.
