If you are wondering what to do about high credit card debt in California – debt settlement, bankruptcy and debt consolidation are three viable options. In a bankruptcy, you do clear out your debts with a fresh financial start, however your credit score will suffer for 6-10 years (making it hard to purchase a house or car) and you could lose certain assets (depending on what kind of bankruptcy you file). In a debt consolidation, sometimes you can get your interest rates lowered, but you still owe the same amount of the initial debt. I usually recommend a debt settlement to get out of high credit card debt.
What To Do With High Credit Card Debt In California
How do you pay off high credit card debt in California if you simply don’t have the means to do so? A debt settlement is a viable option to get out of high credit card debt if you have more debt than you can pay off in a few years period of time or if you have experienced a financial hardship that caused you to fall behind on payments. A debt settlement is a negotiation between the credit card borrower and the creditor that the borrower will pay back an often greatly reduced amount of the debt over a period of time or in a lump sum. The creditors would rather negotiate a debt settlement with you than pay for a team of attorneys to sue you for the debt or to have you declare bankruptcy and receive nothing.
Here are some real examples of individuals who decided on debt settlement as their high credit card debt solution:
- An individual owed 11 different creditors a total of $73,275. Over a period of time, his attorney negotiated this debt down to $29,294.94 and saved the individual 60% of the balance due on these accounts.
- A business owner had a Bank of America business credit card with a balance in excess of $37,000. Unfortunately, the business went under, but the debt remained. Bank of America turned his account over to LTD Financial Services for collections. For this individual’s high credit card debt solution, his attorney settled the accounts for $11,350 – which is a 70% savings on the balance due.
- A gentleman owed $16,363 to American Express. He also had $70,000 in other credit card debt that he could not pay due to financial hardships. American Express referred his account to Nationwide Credit, Inc, a large debt collection agency. His attorney negotiated a debt settlement with Nationwide for his client to pay just $6,546 of the total debt due – and the payments could be spread out over 24 months. The client was strapped for cash, since he was making settlement payments on his other credit card debt, so Nationwide agreed to have him pay only $10 per month for the first few months, until he had freed up more money. Then after that the settlement payments gradually increased in amount until he could pay the off the settlement in full. This gentleman saved $9,817 with this debt settlement.
Jonathan B. Haskett is a debt attorney serving clients in California and focuses exclusively in debt relief. He is licensed to practice in California. Mr. Haskett owns and operates The Debt Settlement Lawyer in San Diego, and helps people with debt problems all over the country, if possible. For more information, please contact attorney Jonathan Haskett at 844-729-4866, or firstname.lastname@example.org. or use our online contact form.