Settling with The Credit Card Company

Debt problems can be overwhelming, but there are ways you can deal with it and reduce your stress. Settling with the Credit Card Company presents its own set of issues.

Settling the debt is one of the most effective actions you can take, but there are several things you should understand before you accept an offer to settle or before you propose an offer to the credit card company.

You have a few different options for settling a credit card debt. You can work with the lender on your own, you can hire an attorney to negotiate a settlement.

Debt Settlement Companies

Debt settlement companies should be avoided. They negotiate a lump sum payment with your creditors and then ask you to pay an agreed upon amount to them each month that is put into an escrow account and eventually paid to your creditors to pay off debts for less than you originally owed. Many times you end up paying them thousands of dollars and they do nothing.

You’ll pay a fee for the debt settlement company’s services, but you need to make sure the fee you pay is accurate.  Many companies charge 15 to 20% of your total debt.  At Weston Legal, we are a law firm and not a debt settlement company.  We only charge flat fees and it will certainly not be 15-20%.

Negotiating a Settlement on Your Own

If you are uncomfortable working with a debt settlement company, you have the option of settling with the credit card company on your own. It never hurts to contact a company directly and ask if they’ll accept less than you owe on the total debt. Explain why you’re struggling to make payments and attempt to work out a modified payment plan that allows you to pay less each month.

The problem with this approach is that debt collectors are not your friends and they are paid on commission.  Their goal is to get as much money from you as possible as quickly as possible.  Many times they give you 24 hour deadlines to pay and put nothing in writing.  Whatever you do, never agree to pay anything without a written agreement.  This is why it makes sense to hire a debt settlement law firm.

Working with a Debt Settlement Lawyer

Another option you have for settling with the credit card company is to contact a debt settlement law firm on a flat fee who can help you arrange a settlement. This is a good option because it means you’ll be working with someone who understands the laws pertaining to debt and who will be 100% in your corner when it comes to negotiating what you owe and ensuring your rights are protected.

Even when you have the best intentions when it comes to debt, you can end up in a lot of trouble. Any effort you make to pay off debt can spiral out of control, especially if there is someone trying to take advantage of your financial vulnerability. An attorney will make sure there are no third parties working against you and that the credit card company acts legally and ethically.

For more information contact 1.800.220.4318.

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