The Law Offices of ALG and Associates – Debt Settlement

If you have ever paid less than the full balance due monthly on your credit cards, two things are true.

You are not alone:

There are over 91 Million households in the U.S. Well over half of them pay less than the full balance due monthly on their credit cards. Some pay only the required minimum monthly payment. Others pay more, but not the full balance then due. (Source: Federal Reserve Bulletin)

You are in need of Debt Relief:

Carrying over monthly credit card balances is not only a sure sign you need Debt Relief, it also exposes you to series of costs and risks in a billing scheme carefully designed by the credit card industry to maximize its profits by keeping you in debt as long as possible.

For example, consumers who make only the required monthly minimum payments on their credit cards may unwittingly extend the full amortization of their debt to over 50 years with the total cost of repayment equating to nearly 4-times the price of their original purchases.

Your best defense is pursuing credit card debt relief in one of its many forms ranging from accelerated debt payoff through debt settlement or one of several options in between.

            ALG and Associates - You Are Entitled To Debt Relief

The Law Offices of ALG and Associates wants to remind you that you are entitled to debt relief because of your financial hardship and you must focus your attention on what you can control, namely getting organized with a Debt Settlement Program.

Creditors Will Settle Debts For Less Than The Full Amount Due!

ALG and Associates has determined that creditors act in what they perceive to be their self-interest; so under many circumstances they will accept as payment in full less than the entire amount they claim is due.

They will settle once they conclude it is better for them to receive the lesser settlement amount now than to continue their collection efforts in the hope of possibly receiving a greater amount or perhaps even the full amount due at some uncertain point in the future:

This is particularly so if:

  1. They calculate that any additional amount collected might already have been consumed by legal and collection costs along the way, or

  2. They cannot see readily available assets that the consumer may have to pay the amount due.

So, creditors can do the math - getting something is better than getting nothing.

Lastly, in many instances, before defaulting on payments, you the consumer have been consistently making at least minimum monthly payments for years. Consequently, the creditor is likely to have received total payments equaling 1.5 or 2.0 (or more) times the amount originally charged. So, in such an instance the settlement negotiations are not about the creditor minimizing an actual loss. They are about the creditor deciding how much of their profit they will forego!

What They Will Accept To Settle Your Debt

The average rate to settle all of your debts is actually more important that the rate to settle any one of your debts, but this is a negotiation and the final settlement amounts are always unpredictable. If anyone guarantees or even quotes settlement expectations, they are out of compliance and you should be very suspicious in their practices. Our objective is to get your creditors to accept a payment that you can afford as payment in full, and to forgive the rest of the balance.

How to achieve a Settlement

There are two Settlement Themes; First show that you are trying to do the right thing in getting to a place where you can pay your creditors as much of what is due to them as your financial hardship will permit. The second is to show that you are trying to avoid filing Bankruptcy by settling your debts with each of your creditors if they will cooperate. Bankruptcy is a creditor’s worst nightmare!

The best time to negotiate is when two conditions exist simultaneously. First, the Key Participant handling your account is facing an imminent deadline or risk of losing the business or profits your account represents. Second, you have adequate Settlement Savings to make a one-time lump-sum payment to fund a favorable settlement of the debt, and we through years of experience and many successful settlements know approximately when it may be best attempt settlements to achieve the best possible results with maximum efficiency.

Should I continue making my payments?

Now, your circumstances may leave you no real choice other than suspending creditor payments, but whether to continue making payments to your creditors is a decision only you can make, not a debt settlement company. Our main objective is to help you contend with your creditors to settle your debts for an amount you can afford to pay and to forgive the remainder of what they claim is due.

The IRS estimates an 84% voluntary tax compliance rate by U.S. taxpayers; guilt and fear play a material role. Similar to the IRS, creditors rely upon voluntary compliance for repayment. However, when payments aren’t timely and collection becomes necessary, guilt and fear are the primary tools employed by the creditors and their collectors. We have been conditioned over time to attribute a high order of significance to our credit scores. This is the earliest fear creditors and collectors tap into when a consumer begins to have payment problems.

Yet, for some of us there are times when, no matter how fiscally and morally responsible we may be, events intervene that we could not easily foresee. True financial hardships can render a person unable to pay their debts, no matter how willing they may be, and I feel that you’re in that type of position now.

Think about how you came to have your credit cards. While you may have sought the first one or two, it is likely the credit card companies solicited you for the others. You probably provided them little data other than your gross income and personal identification information. Yet they found you, decided you were creditworthy, offered you their credit card and extended you credit; and, in most instances you never met with a representative, provided material to verify what little data you provided in their application, or answered any questions. You must view them as they view you, a robotic, automated number and fully disconnect emotionally.

The Law Offices of ALG and Associates can help advise you of the best way to eliminate your debt – For more information about Debt Settlement Negotiation please visit Debt Settlementor give us a call for a free consultation: Toll Free: 888-LAW-3111

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