Being in debt can be frightening and many people feel like there is no one to turn to. Knowing that you owe large amounts of money to multiple creditors can make your stomach turn, especially when the collection calls start coming in. But, luckily, you don’t have to go through this agonizing process alone. There are people whose occupation it is to help you get out of debt and on the right track again, with as little damage to your credit as possible.

The first thing you must to do is contact a loan lawyer or a debt settlement attorney. Chicago has enough of options to choose from, but if you need a recommendation, a friend of mine used the Illinois Law Group.

This is how many debt settlement companies work. First, you will end paying money to your creditor and, instead, commence saving money monthly in a trust account. Then, the settlement company of your selection will handle the torment of the collection calls and put them to an stop. After a healthy amount of money has been collected in the trust account, your debt settlement company can begin negotiating with your creditors, one at a time. Finally, both sides agree on a settlement price that is typically 40%-60% less than what was originally owed.

This operation usually takes up to two to four years to complete. The settlement company commonly charges between 25-35% of what was forgiven under the company’s negotiations. And the best news of all is that, once a settlement has been reached and paid off, creditors are not legally permitted to ever come after you for the balance that was never paid, because your debt settlement company negotiated that for you. But be skeptical and do your homework, because in some states, like Alabama and Delaware for example, the creditor retains his right to sue after the negotiated price is paid off, under certain conditions.

At the end of the day, you need to do your exploring and decide what the appropriate action for you to take is. It never hurts to consult an attorney for his/her expert opinion. Settling your debt can mean averting bankruptcy, paying one single payment to one company instead of multiple, avoiding high late fees, collection prices and other extra charges. It can also wind up as a low credit score and paying taxes on the initial unpaid debt to the IRS.