If your debts have become unmanageable, you might consider discussing your financial situation with creditors. Negotiating with creditors is a good way to reduce debt load and find relief from creditor harassment. However, negotiating with creditors isn’t an easy task. To help you with your creditor negotiations, we have put together mistakes you should avoid during your debt negotiations.
If you need assistance negotiating with creditors, contact our New York debt relief attorneys today at (516) 217-4488 to schedule a case review!
#1: Not Knowing What Type of Debt You Owe
Before starting a negotiation with creditors, you should analyze your debt situation. Creditors might try to convince you of owing more money than you do or threaten that they can take back the items you purchased. Although creditors can reclaim certain types of debt, it’s not always the case.
There are two main types of debt – secured and unsecured. Secured debt is debt tied to collateral. It means that if you don’t pay off your debt, the creditor is allowed to take the property (such as your car, house, boat, etc.).
Unsecured debt is when the debt isn’t tied to collateral, and creditors can’t take the property (like credit card debt, medical bills, personal loans, etc.).
#2: Not Researching Collection Laws
Creditors must follow strict protocols when dealing with debtors. To protect your rights, you should research collection laws to help you identify when creditors aren’t following collections laws. The Fair Debt Collection Practices Act (FDCPA) limits the tactics collectors can use to collect debts. New York also has strict debt collection laws that protect debtors from creditor harassment.
#3: Not Hiring a Debt Relief Attorney
If you’ve experienced creditor harassment, you already know how difficult it can be to deal with creditors. Negotiating with them to get your desired results won’t come easy. For such reasons, you need an experienced debt relief attorney on your side who knows the laws and can protect your rights. A debt relief lawyer can analyze your situation and help you determine the best course of action to help you become debt-free.
If you need help getting out of debt, our team at Jacovetti Law, P.C. can help you find the best relief option for you. Call us today at (516) 217-4488 to schedule a case review!