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Being in debt can be alarming 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, particularly when the collection calls begin coming in. But, luckily, you don’t have to go through this painful process alone. There are people whose business it is to help you get out of debt and on the proper track again, with as little damage to your credit as possible.

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

This is how numerous debt settlement companies work. First, you will stop paying money to your creditor and, instead, commence saving money monthly in a trust account. Then, the settlement company of your choice will handle the harassment of the collection calls and put them to an end. After a healthy amount of money has been collected in the trust account, your debt settlement company can begin negotiating with your creditors, individually. 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 research, because in some states, like Alabama and Delaware for example, the creditor keeps his right to sue after the negotiated price is paid off, under certain circumstances.

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 confer with 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 original unpaid debt to the IRS.