One of the most frequent questions I get is “My credit card debt is too high, so what can I do?”  If you are asking yourself this question, you are not alone.  As CNBC recently reported, outstanding credit card debt is now over $1 trillion. For the past eleven years, my career as an attorney has been focused in the debt industry.  For the first six years I represented banks (credit card companies and mortgage servicers).  For the past four years I have represented borrowers.  I have to admit; it feels pretty great to be on the other side and helping consumers with high credit card debt find their way to financial freedom.  Inside and out, I know about high credit card debt and what to do about it.  The first thing you need to know is that you have options.  The learn about what you can do about high credit card debt, read below.

Options for High Credit Card Debt

Bankruptcy for High Credit Card Debt

I like to think of bankruptcy as a last resort.  For some, it’s the right option.  In a Chapter 7 bankruptcy your debts are completely eliminated.  In a Chapter 13 bankruptcy, your debt is eliminated for a smaller percentage than you owe and you may be able to strip a lien from your property if the fair market value is less than what is owed.  Also, in a Chapter 13 Bankruptcy, you often end up paying up to 80% back to your unsecured creditors.  The downfall of declaring bankruptcy is the obvious colossal hit to your credit, possibly making it more difficult for you to borrow money for the next 7-10 years.


Debt Consolidation for High Credit Card Debt

Debt consolidation could be a good option for you if you are carrying several credit card debts with high interest rates.  In a debt consolidation, you consolidate your credit card debt into a new loan.  If you get a good interest rate on the new loan, it’s a benefit.  Plus, all of your loans are in one place.  The problem with debt consolidation is that first you have to qualify for this new loan and you’re still paying the full balance on your debt.  You really aren’t reducing your overall debt at all. 


Debt Settlement for High Credit Card Debt

A debt settlement is when a negotiation is made between the credit card borrower and the credit card company that the consumer will pay back a reduced amount of the overall credit card debt owed in a lump sum or over an extended period of time.  I have been saving my clients thousands of dollars by negotiating debt settlements with banks such as Chase, Wells Fargo, Bank of America, Citibank, Discover, Capital One, American Express and many more for years.  The banks are in the business of making money.  If your credit card debt is so high that you can’t make payments, the bank isn’t getting paid.  Agreeing to a debt settlement gives the banks a way out, since they can now claim your credit card account as a loss.  Through creative bookkeeping they use the loss of your account to offset their profits.   To learn more about debt settlement, read my recent blog about the benefits of debt settlement for credit card debt.


How Do I know Which Debt Relief Option is Right for Me?

Each person’s debt story is unique to them based on their own individual set of circumstances.   Call me at 858-217-5051 and I would be happy to go over your debt relief options for high credit card debt in a free consultation.  Sometimes taking that first step and picking up the phone is hard, so feel free to ask me any debt question on my “Ask a Debt Relief Attorney” page.   My website also offers many debt education resources such as a FAQ page on credit card debt,  our eBook The Ultimate Guide to Credit Card Debt Settlement, and links to my debt relief YouTube channel.  To read about people just like you who have tackled their credit card problems and are now living a life free of debt, visit my client success stories page.


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, or use our online contact form. Stay updated with the latest debt relief tips by following on Facebook and Twitter!