What Are My Options If I Am Struggling with Credit Card Debt?
When you are struggling with credit card debt, what are your options for getting some kind of relief? The answer will depend on your circumstances. It will also depend on your goal, whether that involves paying off your credit card debt or having it forgiven or discharged. Our Lilburn credit card debt lawyers can tell you more about your options.
Debt Settlement
For debtors who can afford to make a lump sum payment, debt settlement can be an option to get out of credit card debt. Debt settlement negotiations are often easiest when you are late on payments or delinquent. Typically your debt settlement lawyer will negotiate a total amount that is only a percentage of what you actually owe. In exchange for paying that negotiated amount, the credit card company will forgive the remaining debt. Any debt forgiven will be taxable on your income tax return, keep in mind.
Try to Negotiate Your Interest Rate
If debt settlement is not an option for you or you want to explore other options that may be available, you might want to consider negotiating your interest rate with the credit card company. This can be particularly helpful for debtors who are making the minimum payment (and thus are not behind on payments or at risk of delinquency) but accruing significantly more debt due to credit card interest each month. According to the Federal Trade Commission (FTC), banks issuing credit cards may be willing to negotiate your interest rate. If you can negotiate a lower interest rate, the interest added onto your total balance will be lower than it was previously after each month.
Negotiate a Payment Plan
Depending on your circumstances, a credit card company may be willing to negotiate a payment plan. However, this can involve your being unable to continue making purchases on the card. In addition, missing a payment can cause significant difficulty.
Debt Consolidation
There are various options for debt consolidation. This is something you can do yourself by taking out a personal loan (typically with an interest rate significantly lower than your credit card interest rate) and paying off your credit card balance. Or, some debtors go to a debt consolidation business, which typically involves closing your accounts and making a regular payment over time for a number of months or years. With debt consolidation, you would be paying off all of your existing debt plus interest, and often fees.
Personal Bankruptcy
You might also be considering personal bankruptcy. Depending on the type of bankruptcy, you may be eligible to have all of your debt discharged in exchange for the liquidation of non-exempt assets, or you may be able to reorganize debt in a Chapter 13 case.
Contact a Georgia Credit Card Debt Attorney for Help in Lilburn
Are you struggling with credit card debt and eager to find out about options that may be able to relieve some of your anxiety and your debt? An experienced Lilburn credit card debt lawyer at Konn Law Firm LLC can discuss your financial circumstances with you today. Contact us to find out more about how we can help.
Source:
consumer.ftc.gov/articles/how-get-out-debt
