Will Credit Card Companies Agree to Debt Settlement?
As of the end of 2024, Americans have a combined credit card debt of $1.166 trillion, according to Lending Tree. That amount is massive. Over the course of 2024, credit card debt has either risen each month or has remained steady. In other words, there have been no indications that Americans are able to pay off credit card debt. And, according to a report in Newsweek, Georgia residents have some of the highest amounts of credit card debt in the country. Indeed, the top five states for credit card debt in order are Mississippi, Georgia, Louisiana, Alabama, and Texas. To be clear, Georgia residents have the second-highest amount of credit card debt in the country. Moreover, they are more likely than residents of other states to “have payments overdue by 30 days or more,” according to Newsweek.
When you are facing a seeming mountain of credit card debt, it may be possible to work with a Georgia debt settlement lawyer to arrange for a debt settlement with your credit card companies.
What is Debt Settlement for Credit Card Debt?
Debt settlement is an option for getting out of debt by repaying a portion of what you owe to a creditor (or creditors) and having the remaining amount forgiven. As the Federal Trade Commission (FTC) explains, with a debt settlement agreement with credit card companies, you will typically pay a lump sum, or arrange to pay a specific amount over a short period of time, that total significantly less than what you owe. In exchange for paying that amount, the credit card companies agree to “settle” your debt and forgive the remaining amount.
In order for a debt settlement to work, you will need to get the credit card companies to agree to settle the debt.
Negotiating a Debt Settlement Agreement with Credit Card Companies
According to data from the Consumer Financial Protection Bureau (CFPB), rates of debt settlement have been increasing across the country since 2016. In other words, more debtors have entered into debt settlement agreements to get out of debt. That means those creditors agreed to settle those debts.
By working with a debt settlement lawyer in Georgia, you will have an advocate on your side who can negotiate with your credit card companies on your behalf. A lawyer can work to negotiate a debt settlement amount that works for you and that will allow you to get out of debt. It will be important to discuss your financial circumstances ahead of time with your lawyer so that you can make a plan for a debt settlement figure that will be possible for you under the circumstances.
Contact Our Georgia Debt Settlement Attorneys
If you are struggling with credit card debt in Georgia, it is important to remember that you certainly are not alone. Like many Georgia residents, you may have multiple options for getting out of debt, including the possibility of debt settlement. Whether you have substantial debt on just one or two credit cards or multiple credit cards combined, it may be possible to negotiate a debt settlement. One of the experienced Georgia debt settlement lawyers at Konn Law Firm LLC can discuss your financial circumstances with you today, and we can tell you more about debt settlement possibilities. Contact us for more information.
Sources:
lendingtree.com/credit-cards/study/credit-card-debt-statistics/#:~:text=How%20much%20credit%20card%20debt,Reserve%20Bank%20of%20New%20York
newsweek.com/map-shows-states-worst-credit-card-debt-1971534#:~:text=Georgia%20saw%20a%20high%20rate,on%20their%20credit%20card%20payments
files.consumerfinance.gov/f/documents/cfpb_quarterly-consumer-credit-trends_debt-settlement-credit-counseling_2020-07.pdf
consumer.ftc.gov/articles/how-get-out-debt#Other%20Debt%20Relief%20Services
