How to Save Thousands of Dollars with a Debt Settlement: When you find yourself in credit card debt, be sure to do your research on the pros and cons of each option to get out of debt. For instance, with a debt consolidation, your debt is all rolled into a new loan and usually at a lower interest rate. Some people feel that consolidating their debt simplifies their life. And that may be the case, but the debt is still there. And you still have to pay back the full amount that you owe. Some people feel that bankruptcy is their only way out. And for some people it is, but a bankruptcy is difficult to recover from. Debt settlement is a very viable option to get out of credit card debt. I will take you through the benefits of debt settlement for credit card debt, as well as the downside. You can literally save thousands of dollars with debt settlement.
Benefits Of Debt Settlement
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What is a Debt Settlement?
A debt settlement is basically a negotiation between the (credit card) borrower and the lender (credit card company) that the borrower will pay back a reduced amount of their debt, rather than the full amount. The process of a debt settlement begins when the borrower is in default in their payments on their credit card. Once in default for 180 days, the lender considers the loan “charged-off” – and therefore, unlikely that the loan will be paid back. Banks considers “charge-offs” as a cost of doing business and they also receive tax exemptions for the debt. However, the bank will still try to collect this debt.
Can I Do a Debt Settlement on My Own?
Absolutely. Anyone can do a debt settlement. But how successful do you want to be? A skilled debt relief attorney with a proven track record knows what defines a great debt settlement. They also have experience going up against the lenders, they know who to contact, and they know how to negotiate. As a side note, be careful of debt relief companies (unlike law firms) who ask for fees upfront and are not held to the same legal and ethical standards as attorneys. View our SlideShare to learn How To Settle Credit Card Debt With A Debt Settlement to begin your path to a debt free life!
Are there any Downsides to Debt Settlement?
- There is a chance your lender will sue you if you stop making payments on your credit card debt. Perhaps you have already been sued for non-payment. The benefit of retaining an attorney to help you is that you have solid representation if a lawsuit is brought against you. This downside of being sued can be turned into a positive when you consider than the lenders don’t want to go to court. That will cost them money. They would rather wrap up your account in a debt settlement than proceed with a lawsuit.
- Your credit will take a dip when your loan goes into default. The negative marks will stay on your credit until your debt settlement is completed. In which case, it can rebound in as little as 12 months. Think of how bad your credit would be if you never took care of your credit card debt.
What are the Benefits of Debt Settlement for Credit Card Debt?
- When you were high in credit card debt and unable to pay your monthly payments, your credit score was plummeting with no end in sight. While your credit score dipped during the debt settlement, once it’s complete – then it can rise higher than you imagined before you took care of your debt.
- Your phone will stop ringing from debt collectors once you retain an attorney. Once representation begins, your lender will be contacted with a notice that they are no longer permitted to contact you. If they violate this notice, they could face monetary penalties for defying state and federal debt collection practices.
- You have bargaining power in a debt settlement. The credit card companies are in the business of making money. If you stop paying your monthly credit card payments, they lose money. Debt settlement gives the credit card companies a way out, since they can now claim your account as a loss. Through creative bookkeeping they use the loss of your account to offset their profits.
- Your credit card debt crisis will be over quickly with a debt settlement, and you can move on with your life.
Gamez Law Firm Credit Card Debt Settlement Success Stories
Here are just a few of credit card debt settlement success stories. You can read about more debt settlement success stories about people just like you with credit card debt on our website.
- Our client had a business credit card account with Bank of America Alaska Visa. The balance exceeded $37,000.00. The business failed, but the debt remained a personal liability for our client. Bank of America assigned the debt to LTD Financial Services for collections. We negotiated with LTD to settle the account for $11,350.00. We saved our client just under $26,000.00 (a 70% savings on balance due).
- Another client owed Chase Bank $20,472. During the course of our representation, Chase notified our client that they were discharging the entire debt. Our client saved $20,472 – or 100% of the total debt owed.
- One client owed Target $1,594. We settled the debt for $478. The Gamez Law Firm saved our client $1,116 – or 70% of the total debt owed.
- Discover Card sued our client for $7,300. We settled the debt for $3,500, payable over a 12-month term. The Gamez Law Firm saved our client $3,800 – or 52% of the total debt owed.
- American Express sued our client for $46,654. Our client never disputed this amount during the course of defending the lawsuit. Despite this, we negotiated a settlement of $18,000 for our client. The Gamez Law Firm negotiated a payoff equal to 38% of the total amount due on the account, saving our client $28,654.
For a free debt relief consultation, contact me via my website or call me at 858-217-5051.
Daniel R. Gamez, an attorney focusing exclusively in debt relief, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in San Diego, CA. For more information, please contact Daniel Gamez at 858-217-5051, firstname.lastname@example.org or use our online contact form. Stay updated with the latest debt relief tips by following on Facebook and Twitter!