Will the Types of Purchases or Transactions Affect My Credit Card Debt Settlement Negotiations?
Credit card debt is a burden to millions of Americans, including consumers throughout the state of Georgia. According to recent data from LendingTree, credit card debt in the country totaled nearly $1.25 trillion by the end of 2025. That number represents a significant increase from previous years and reveals that credit card debt has continued to grow with each passing year since approximately 2011. Since 2021, credit card balances have risen by approximately $463 billion in total, and interest rates remain “sky high,” as LendingTree explains. What that means is that credit card debt continues to rise for consumers who do not pay off their debt each month and carry revolving balances.
Quite often, it is possible for debtors to reach a debt settlement agreement for credit card debt they owe. A debt settlement agreement allows a debtor to repay only a portion of what they owe (typically up front in a lump sum) in exchange for the creditor forgiving the remaining amount of debt. If you are considering debt settlement, you may be wondering if the nature of your credit card debt can impact your debt settlement negotiations. In other words, will the types of purchases or transactions you have made affect your ability to reach a debt settlement agreement? In general, the answer is no. Our Lilburn debt settlement lawyers can explain in more detail.
Creditors Are Concerned with the Amount You Owe and What You Can Pay
When you owe debt on a credit card and want to see about negotiating a debt settlement agreement, you do not need to focus on the specific charges through which you accrued debt. In other words, when creditors are considering debt settlement offers, they are not focusing on whether you made a charge for groceries or for a spa day. Creditors are going to be concerned with the amount of debt you owe and what you can pay to settle the debt.
Likewise, for an unsecured credit card (which most are), there is not going to be a focus on charges for goods versus services.
Debt Settlement is Possible for General Purpose Credit Cards and Store Credit Cards Alike
In terms of where debt has been accrued, you should also know that debt settlement is possible for general purpose credit cards (such as a Chase Visa or a general Mastercard) as well as store credit cards (such as a Gap or Best Buy credit card). Creditors will be interested in how much you owe and how much you can pay to settle the debt.
Contact a Lilburn Credit Card and Debt Settlement Attorney Today for Assistance with Your Debt Settlement Negotiations
Are you struggling with credit card debt? If so, working with an experienced Georgia debt settlement lawyer at Konn Law Firm LLC to negotiate a debt settlement agreement may be a solution for you. For many Georgia residents, debt settlement is a clear choice for getting out of debt. Contact us today to discuss your financial circumstances and to begin working on a debt settlement agreement with your creditor or creditors.
Source:
lendingtree.com/credit-cards/study/credit-card-debt-statistics/
