Get rid of your debt this year by paying off your credit card debt with your tax return money.  If your credit card debt is more than your tax refund, do not worry.  You can still make huge progress toward living a life free of debt with a debt settlement.  A debt settlement is literally a negotiation made between the credit card borrower (you) and the lender (the credit card company) for you to pay back a (usually greatly) reduced amount of your credit card debt – rather than paying back the full amount.  If you cannot pay your credit cards and are caught in a debt spiral, then it’s time to take action with a debt settlement. There are many benefits of debt settlement for credit card debt that I will go into later.


How to Use Your Tax Refund to Pay off Credit Card Debt with a Debt Settlement

You can use your tax refund to pay off your credit card debt with a debt settlement.  In order to reach the bargaining table for a debt settlement, your credit card debt usually needs to be delinquent for 180 days.  At this point your accounts are considered to be in default and “charged-off” by the bank.  You still owe the credit card debt, but the bank will now get tax exemptions for writing off your debt as uncollectable.  At this point, the bank would rather negotiate a deal for you to pay back a portion of your total debt (a debt settlement) rather than have you declare bankruptcy and receive nothing.


The Benefits of Paying Off Credit Card Debt with a Debt Settlement

The long-term benefits of a debt settlement outweigh the dip in your credit score that will happen when your credit card payments are delinquent and your account goes into default.  If you are already delinquent in your credit card payments, then your credit score has likely already suffered.  If you take care of your debt with a debt settlement, then once completed – your credit score will start to increase gradually. Within a year or two, you could have a stellar credit score, depending on other positive activity in your credit history. The greatest benefit of a debt settlement is that your debt problems will be over and you can move on with your life.  Read about our client success stories to learn about people just like you who are now living a life free from the burden of debt.


Can I Do a Debt Settlement on my Own to Pay Off Credit Card Debt?

Anyone can do a debt settlement.  If you have a few small credit card debts, then you could try to settle them on your own.  If you owe a significant amount in credit card debt, then I would recommend hiring an experienced debt relief attorney.  Make sure you go to someone who offers a free consultation, so you can learn about all of your options before diving in.  Be aware of debt relief companies, as they are not held to the same ethical and legal standards as an attorney. There are many debt relief scam artists out there, so do your research and make sure whoever you work with has a proven track record of successfully settling debts. 


How do I Get Started Paying Off My Credit Card Debt with My Tax Refund?

Your first step is finding someone you trust to handle your debt settlement and calling them.  Credit card debt can be an embarrassing and sensitive issue, so sometimes it’s hard to pick up the phone and take that first step.  If you have a debt relief question, feel free to submit it to me via my “Ask a Debt Question” page and I will get back to you within 24 hours.  Another step is to educate yourself on the debt settlement process.   I offer a free eBook called The Ultimate Guide to Credit Card Settlement that you can download from my website.  In addition, I offer educational videos on our YouTube channel, such as “How to Reduce Credit Card debt with a Debt Settlement”.  You can also always call me for a free debt relief consultation at 858-217-5051 to go over your debt relief options.


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!