Beware of This Inefficient and Misleading Industry

The darkest corner of the world of debt relief is the so-called debt consolidation industry. Many of the companies in this industry mislead their clients about the nature of the services they provide, so that their clients do not understand the risks associated with consolidating debt. These companies provide services in such a way that puts them in direct conflict with the interests of their clients, all while charging exorbitant fees.

Fortunately, there is a better path to debt settlement. The Wink Law Firm will be honest with you about the risks associated with debt consolidation. Our approach will enable you to settle your debt faster and for less, all while charging you less than half of what our competitors charge.

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Abandon Your Preconceived Notions About Consolidating Debt

When you’re living with debt and getting calls from debt collectors, you may feel compelled to turn to a debt consolidation loan or other debt consolidation services as a way out. Many people in debt may have an aversion to bankruptcy, even if it is a cost-effective option for debt relief. These same people often believe there is an alternative, affordable way out of debt that doesn’t risk their credit score or financial wellbeing.

Unfortunately, these preconceived notions make you vulnerable to lies that predatory debt consolidation companies tell. Get the truth with The Wink Law Firm.

Debt Consolidation Is Not Debt Settlement

True debt consolidation means taking out a loan to pay off other loans, such as credit cards. Typically, the benefit of debt consolidation is decreasing the interest and total monthly payment amount in order to pay off your debt. Using this method, you are not getting out of debt for less than the balance owed.

Unfortunately, many debt settlement companies market themselves as someone you can trust to manage your debt consolidation. However, these companies take your money while advising you to stop paying your creditors. They then either negotiate the settlement of your debt for less than the balance owed – which is debt settlement, not debt consolidation. When these companies refer to their service as debt consolidation, it is deliberately misleading, giving you a false sense of security about the inevitable risks of settling debt.

The Wink Law Firm Is Honest About Your Risks

The Wink Law Firm is honest with our clients about the risk to their credit when they settle debt. We also advise our clients on how to rehabilitate their credit after settling debt. This enables our clients to plan prior to going into default on their debt, such as purchasing a car or moving into a new lease before embarking on debt settlement.

Taking action with help from our debt relief experts gives you a vision for a brighter future, often with credit available much sooner than you could imagine.

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What Are the Risks of Debt Consolidation and Debt Settlement?

  • Impact on credit: The only way to negotiate settlement for less than the balance due to your creditors is to stop paying them. This negatively impacts your credit. Your credit will recover, but it will get worse while you are settling debt. Most debt settlement companies don’t tell you this.
  • Lawsuits: The risk of lawsuits is not inevitable, but is certainly significant when settling debt. Companies who fail to disclose this risk before you sign on for a debt settlement plan are deliberately misleading you. You can absolutely be sued while enrolled in a “debt consolidation program” with our competitors. In fact, The Wink Law Firm has represented a number of clients experiencing this. They had no idea they could be sued because they were lied to about their debt being included in a consolidation program, without an explanation of what was actually going on.Worse, if you get sued while in a program like this, the company you’re working with is typically unable to settle the lawsuit because they are allocating your monthly payments to other creditors. Most so-called ‘debt consolidation’ companies rush to get your monthly payments into payment plan settlements with your creditors, even though this approach makes you more vulnerable to lawsuits. This is because you lose flexibility when your monthly payment is being allocated to settlements and exorbitant fees. While you are making monthly payments to creditors A and B, creditor C is not being paid and sues you. When this happens, you don’t have flexibility to settle the lawsuit with creditor C because your monthly payment is going to creditors A and B. This is a primary reason why debt consolidation plans with our competitors fail. Settling lawsuits is more important than settling other debt because the lawsuit creditor can garnish your wages or bank accounts if it obtains a judgment against you. The Wink Law Firm prioritizes settling with the lawsuit creditor so you can avoid these debt collection tactics. And our focus on pursuing lump-sum settlements for our clients gives you flexibility in the event you get sued because you will not have your entire monthly savings allocated to other creditors.
  • Exorbitant Fees: Nearly all debt settlement companies marketing themselves as debt consolidators charge 20 to 30% of enrolled debt. Conversely, The Wink Law Firm charges you just 10%.
  • Payment Plan Settlements Do Not Benefit You: When these fees are charged as a percentage of total debt, the law requires that the service provider not earn anything until you accept a settlement and make a payment on it. Because of this, many debt settlement companies require you to make monthly payments to them, and then rush to direct these payments into payment plan settlements so that they can get their fees as soon as possible. However, this approach to debt settlement tends to cost more because creditors generally require that you pay more to settle your debt if the settlement amount is paid over time through monthly payments. These payment plans settlements typically require 60% to 90% of the balance owed. Instead, if you were to wait and save until you could make a lump-sum settlement offer, you are more likely to settle at or near 50% of the balance owed.

With Debt Consolidation, Knowledge Is Power

Understanding debt relief processes empowers you to make the right financial decisions. While our competitors will often set up 3 to 5 year payment plans for debt settlment, The Wink Law Firm advises clients to save the money required to settle debt and pay our fees within the first 24 months of when you stop making payments to your creditors.

This gives you the power to minimize the risk of lawsuits because saving more, faster can enable you to settle your debt before you get sued and for less than you owe. Creditors typically accept about 50% of your debt as payment in full before suing you, but will require that you pay more after they file the lawsuit. If you do end up being sued, The Wink Law Firm has attorneys on staff to help you settle the lawsuit before you face wage garnishment.

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Settle Debt Faster and for Less with The Wink Law Firm

By advising clients to save the funds required for settlement within 24 months, focusing on lump-sum settlement offers, and fair fees, The Wink Law Firm enables you to settle your debt faster and for less.

To settle your debt faster and for less than our competitors, contact The Wink Law Firm.