debt reduction credit card negotiation & Debt Reduction credit card settlements
If you owe over $20,000 in credit card debt, a debt settlement attorney may be able to negotiate a debt reduction credit card settlement with your creditors.
Under a debt reduction credit card settlement, your creditor agrees to reduce the amount you owe in return for a guarantee that you will pay off the reduced amount at specified terms. This process also is referred to as third-party debt reduction credit card negotiation.
The criteria for qualifying for a debt reduction credit card settlement are the same as for a Debt Management Plan. The debt settlement can include credit card and other unsecured debt, but not mortgages, auto loans and other secured debt such as student loans, or legal obligations such as alimony, child support and fines.
Under a debt reduction credit card settlement, the debt is generally resolved within one to three years, with creditors settling for between 20 and 80 percent of the original debt. After you pay the debt settlement attorney fees and settle the debt, you will see an average of 50 percent in savings.
However, watch out for agencies that promise to reduce your debt by 50 to 70 percent. Many of these agencies are not reputable and unlikely to deliver. Currently, the Federal Trade Commission is investigating a number of questionable debt settlement companies that make such false promises to consumers. Always use a licensed debt settlement lawyer and ask us for a referral for your particular circumstances.
A debt reduction credit card debt workout works as a negotiated settlement of credit card debt. For example if you owed $5,000 on a credit card and made an agreement with the credit card company to pay $2,000 instead of $5,000 as debt settlement in full on the credit card debt, this would be a credit card debt workout.
Attorneys who perform this type of work may identify themselves as debt management, debt reduction, debt relief, debt workout, debt settlement or a host of other names inferring they help with debt even sometimes including debt consolidation. Debt consolidation is a reorganization of the debt through a credit counselor or taking a debt consolidation loan to pay of the debts in full.
Always call us at 1-888-502-3907 for advice and referrals to specialized debt settlement lawyers to accomplish this task.
Better be safe than sorry.
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