What Professional Debt Mediation Can do for Consumers
Professional debt mediation is one way in which borrowers who are over their heads can obtain some much-needed relief. The basic process of debt mediation involves negotiating with your creditors so that they will be willing to accept less than 100% of the amount owed. Individuals can attempt to do this on their own, but banks and credit card companies may be more willing to make concessions to debt mediation companies. This is because professional mediation attorneys are well versed in negotiation tactics as well as financial matters.
Results of Professional Debt Mediation Services
Although every borrower's case is unique, it is possible in many instances for financial mediation to achieve very positive results, sometimes eliminating more than half of the original debt. Creditors actually have an incentive to be reasonable when it comes to debt mediation; they know that if the borrower is pushed into bankruptcy, the bank or credit card company will most likely receive no settlement at all.
Consumers should be aware from the beginning that debt mediation is not usually a fast process. Timelines of 12 to 36 months are not unusual, particularly in cases where the borrower has many different creditors. However, during this time the borrower will probably stop receiving repeated phone calls from creditors, though banks retain the right to make contact if they choose.