Credit Card Debt Negotiation

What can do you if you find drowning in credit card debt? What credit card debt solutions are there? Obviously, you have the debt “nuclear options”—defaulting on and walking away from debt, if you have little income and no assets (and so are judgment proof), or even declaring bankruptcy. But those are very drastic options, ones with potentially dire consequences; just for a start, you may not be able to borrow money or get credit for years after defaulting on debt or going bankrupt.

Debt Negotiation Rationale

Nobody wins if a debtor defaults or declares bankruptcy. While lenders are not quick to give up on money they’re owed, most understand the clichéd, but true, logic of “half a loaf is better than none” or “a bird is the hand is worth two in the bush.” If you can demonstrate that you cannot pay your debt as it stands, but may be able to repay a lesser amount, a lender might conclude that’s in everyone’s interest.

Debt Reduction and Forgiveness

What can a credit card issuer offer you? They can offer a credit debt solution. They could reduce what you owe, which can make your debt much more manageable. Whether it’s called credit debt reduction or credit card debt forgiveness, it amounts to the same thing: the creditor writes off a portion of you debt, reducing what you owe by 10%, 20%, 30% or more, in hopes that by doing so, they’ll be paid something rather than nothing. (They also get some tax benefit from doing so.) Often, they’ll give you a steeper discount or write down if you could pay what’s left up front—that way, they have the money in hand instead of having to wait for it, which has its own value.

Credit Card Debt Negotiation Legal Help

Negotiating with lenders is an art, not a science. You need to understand how they think, how to communicate with them, what looks like a reasonable deal to them, and what evidence will persuade them that your financial distress is real, not manufactured just to win a reduction. Instead of trying to learn how to do this from scratch, an experienced credit card debt negotiation attorney experienced at coming up with debt solutions can negotiate more effectively on your behalf.