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Is It Possible To Negotiate Credit Card Debt Away?

Credit card debt can get out of control quickly, thanks to high interest rates and late fees. Many people are left in a position where catching up is simply not a possibility. When exploring solutions, a recent article from U.S. News & World Report suggests attempting to negotiate with the credit card company.

How To Negotiate With A Credit Card Company

The article suggests starting by thinking from the credit card company's point of view. The credit card company is a business that wants to make money. It will want to make some money, but also understands that pursuing collection actions can be expensive and accepting a settlement may be better than taking a total loss.

With that in mind, go into the negotiation with realistic numbers. Look at your income and your debt load. Come up with a potential payment plan to pitch to the credit card company, or see if you can offer a lump sum settlement. Other areas of negotiation could include asking to eliminate the accrued interest or late fees.

A Note About Debt Settlement Companies

This article outlines how you can attempt to negotiate your credit card debt down on your own. You may already know that there are businesses out there offering to negotiate with your creditors on your behalf. They may make big promises, but be aware that they may have no more leverage with your credit card company and other creditors than you do.

Is Negotiation With The Credit Card Company Realistic?

While negotiating with a credit card company may be possible in some scenarios, the article does not take into account the fact that many people who are drowning in debt have more than one credit card to deal with. You may have several credit cards, as well as other debts, ranging from medical bills to car loans to mortgages.

For many, one credit card is just the tip of the iceberg. Furthermore, depending on how high the credit card debt is and what your income level is, coming up with a settlement the credit card company will accept may simply not be possible. Additionally, most individuals do not have leverage in negotiations with creditors, and are often just given the runaround.

Bankruptcy is an effective method of eliminating credit card debt. Because credit card debt is unsecured debt, it can be discharged through Chapter 7 bankruptcy. That means no portion of it will need to be repaid. Chapter 7 may also be used to overcome other debt. If you do not qualify for Chapter 7, you may be able to take advantage of Chapter 13.

Before proceeding with any strategy to eliminate credit card debt, you can benefit from having an experienced attorney review your situation. At Russo White & Keller P.C., we offer free consultations about debt relief options such as bankruptcy.

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