Settling Credit Card Debt




Settling Credit Card Debt

Settling Credit Card Debt is definitely not a walk in the park. But can be done. It is true that a creditor can pursue legal action against you and attempt to garnish your wages and put liens against your property in pursuit of payment. But the reality of them pursuing legal action economically is very small.

A lot of consumers are overwhelmed with their debt when life happens. Life issues such as death, loss of job, loss of health can overwhelm the best of us. Creditors know that if you have experienced or are experiencing any of the aforementioned, that they will have a more chance of winning a legal action against you. Impending doom posed by a creditor is rarely the case when you are faced with life altering circumstances. That does not mean that they will not pursue legal action though. But because consumers are ill-informed, they rush to prematurely file for bankruptcy. Bankruptcy is the absolute last option.

Settling your credit card debt should be a viable option considered by you. Lets start with the most important law protecting you against unscrupulous collection agencies:

FDCPA Section 809. Validation of debts [15 USC 1692g] (b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. You can find this in the Fair Debt Collection Protection Act. Here is communication from the Federal Trade Commission: UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION WASHINGTON, D.C. 20580 Division of Credit Practices Bureau of Consumer Protection March 10, 1993 Jeffrey S. Wollman Vice President and Controller Retrieval Masters Creditors Bureau, Inc. 1261 Broadway New York, New York 10001 Dear Mr. Wollman: This is in response to your letter of February 9, 1993 to David Medine regarding the type of verification required by Section 809(b) of the Fair Debt Collection Practices Act. You ask whether a collection agency for a medical provider will fulfill the requirements of that Section if it produces "an itemized statement of services rendered to a patient on its own computer from information provided by the medical institution . . ." in response to a request for verification of the debt. You also ask who is responsible for mailing the verification to the consumer. The statute requires that the debt collector obtain verification of the debt and mail it to the consumer (emphasis mine). Because one of the principal purposes of this Section is to help consumers who have been misidentified by the debt collector or who dispute the amount of the debt, it is important that the verification of the identity of the consumer and the amount of the debt be obtained directly from the creditor. Mere itemization of what the debt collector already has does not accomplish this purpose. As stated above, the statute requires the debt collector, not the creditor, to mail the verification to the consumer. Your interest in writing is appreciated. Please be aware that since this is only the opinion of Commission staff, the Commission itself is not bound by it. Sincerely, John F. LeFevre Attorney Division of Credit Practices Bottom line your first line of defense is to become educated. This is not to say that you should seek to not pay your debt and take advantage of credit granters. These laws have been put in place just to arm you with what you need as a consumer when life hands you some lemons and you seek to make lemonade.

Credit card debt is rising and banks are competing for your business. The average credit cards per person---almost ten cards! Credit card debt is one of the major forms of debt in the US and in many parts of the world. Credit cards have made it easy for the average consumer to take out what amounts to an immediate loan for both purchases and cash advances. Credit card debt is unsecured debt that can be discharged in bankruptcy. By contrast, some unsecured debts are not dischargeable in bankruptcy, and secured debts, such as home and auto loans are minimally affected.

Consumer debt can be associated with Predatory lending , although there is much debate as to what exactly constitutes predatory lending. Consumers incur debt for many different reasons. Sometimes illness, accidents, or just bad luck can make it seem impossible to get finances under control.

Creditcard debt reduction is not going to be as easy as raising debts via credit cards. Credit card debt reduction is necessary because credit is so readily available that it is often taken for granted. It is important to realize that not all credit cards are created equal.

Credit card debt reduction is an all too common requirement and is becoming a really big problem on a world wide scale. There is not a positive side to the use of a credit card. Credit card debt reduction becomes a necessity if you are starting to pay the debt from one company with loans from another. The interest rates can also get high, even if they do not seem so on the spot.

Consolidation loans carry interests rates far below those of credit cards. In the long run, a great deal of money can be conserved through the use of a debt consolidation loan. Consolidated Credit Counseling has a great reputation among consumer advocates and has been helping consumers throughout the nation get out of debt for over 10 years. They can reduce your interest rates by 50% and can give help restore your financial peace of mind.

Negotiating with your creditors is possible but if you don't know how to negotiate, it's best to consult a credit counseling service. They'll let you know if debt consolidation is your best bet or if they need to intervene and negotiate a payment plan for you with the creditors. Negotiating the most aggressive debt settlements is the focus of a good Law Firm's practice.

This article does not attempt to give legal advice. Please check with an attorney or other legal professional before settling on any course of action

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