Did you know that the average credit card balance in the U.S. is over $5,000? It’s no wonder why many individuals seek advice from a bankruptcy attorney to help them manage their finances. If you’re in a similar situation, negotiating with your charge card company is one way to get ahead.
It’s important to know that continuous use of charge cards can easily spiral out of control. Before you know it, you may struggle to afford credit card payments or end up using your card to pay for other bills. If you’re unable to pay off your debt, contemplate contacting your creditor to negotiate the total owed. One may be surprised at how many charge card companies are willing to negotiate with you. This is because charge card debt is unsecured, meaning your home or vehicle isn’t at risk as it would be with a mortgage or auto loan.
One would be surprised at how many charge card companies are willing to mediate with you. Perhaps you are wondering why they would do this for you. One of the biggest reasons is that one’s debt through charge cards is not secure. Therefore, your home or vehicle is not at risk as it would be if you possess a mortgage or an auto loan.
However, a bankruptcy attorney will tell you that not paying your charge card bill will harm your credit. Not to mention that the lender may try to sue you if you are not paying. But if you are willing to speak with them about haggling about what you owe, you will have a better chance. This is because creditors know that if you hire a bankruptcy attorney for insolvency, they aren’t going to be capable of recovering any of their money. Yet if they allow one to resolve their debt, they will still get some of their money.
As an added benefit to the credit card company, they know that if they negotiate with you, they have a better chance of serving you longer.
Before you call the charge card company, first determine what you actually owe them. Be sure to look at what interest you are paying as well.
Then think about your position. Are you able to pay a large lump sum at once? Do you have a misfortune that you may be entitled to their hardship program? Or perhaps you are capable of creating a workout agreement work. Before calling, decide what you feel the safest choice is.
When making the call to the charge card company, ask to be connected to their hardship department, settlement department, or loss mitigation center. Once you are speaking to one of those reps, let them know what your circumstances are and how you would like to fix them. It is crucial to remain firm but still be polite.
A bankruptcy attorney will tell you while you’re speaking to them to take notes. You should also ask for the agreement in writing once both parties are in agreement. If you need to follow up with the company, be sure to do so.
If you are unable to reach an agreement with the charge card company, you may wish to look into hiring a professional to assist you in settling your obligation.
Should you need further guidance, a bankruptcy attorney can provide you with valuable advice. If you are looking for such a service and reside in the Clearwater, FL, area, call Weller Legal Group. They can assist you with a wide diversity of services, from credit guidance to credit remedy, agreements to foreclosure defense, and everything in between.
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