Jannelle wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
I have dropped my debt management company and am trying to negotiate with Chase and HSBC. I’ve composed a letter to them offering 40% of the balance owed. Am I better off hiring a lawyer to send this letter, or should I send it on my own?
Jannelle”
The Answer:
Dear Jannelle,
That’s a really good question. The answer isn’t quite as clear cut as you’d hope.
Typically the best settlement offers are going to come after being 90 days delinquent. Doing that will trash your credit and lead to a lot of collection pressure. Most people can’t make it through those stressful and tough times and risk getting sued just to get a good settlement offer.
Hiring a local attorney to do this for you has some advantages. Most of all it is a third party and that person is not emotionally attached to the debt and can’t be manipulated as easily as you can. That’s not a reflection about you, but a fact that you are easier to scare and lie to in order to manipulate, than a professional third party.
As far as sending the debt settlement letter, see this post about a sample debt settlement letter, “I’ve Had Problems Working With a Debt Settlement Company and I’m Looking for a Sample Debt Settlement Letter. – Kerry.”
If you could find a professional debt settlement company that would represent you for less than $500 and agree to refund your fees if they were not successful in obtaining the desired result, that may be an option as well.
