Expert Bankruptcy & Debt Relief Insights

If you are old enough to qualify for a credit card, run up a big balance, and have so many other financial obligations that you can barely afford the minimum payments on your credit card, then you are old enough to know that there is no such thing as a free lunch. When people offer you a discount or a freebie, it is only because there is also something in it for them. What would possess a credit card company to charge you a lot of interest and fees on the purchases you have made, and then later tell you that you don’t have to pay them? If you receive an offer for credit card forgiveness, you should not immediately assume that it is a scam. The credit card company is probably extending a genuine offer to forgive part of your credit card balance, but you should only accept the offer if you are sure that it is your best option. For help strategizing about the best way to settle or discharge your credit card debt, contact an Oakland chapter 7 bankruptcy lawyer.

How Do Credit Card Companies Identify the Ideal Candidate for Debt Forgiveness?

Credit card debt forgiveness is a debt settlement arrangement initiated by the credit card issuer. Typically, the credit card company offers to settle the debt amount for about 30 percent less than its face value if the borrower pays the settlement amount in a lump sum. The ideal candidate for credit card debt forgiveness is a financially distressed consumer, but not too financially distressed. You have the greatest chance of getting your credit card debt forgiven on the card issuer’s initiative if your total outstanding credit card debt is between $7,500 and $10,000, whether that balance is all on one card or spread across two or more cards, and if your income is between $40,000 and $50,000. You have a chance of qualifying for credit card debt forgiveness, whether you have kept up with your minimum payments or have already missed a payment.

You Still Have Options, Even If You Are Not a Credit Card Debt Forgiveness Poster Child

You still have options for getting your credit card debt to go away for less than the face value amount, even if the credit card company does not come to you with a debt forgiveness proposal, or if you do not have enough money available for a lump sum settlement. If you can qualify for a debt consolidation loan, then you can pay off one or more of your credit cards for less interest than you would have paid if you had just continued to make payments on the original cards. If not, you can initiate debt settlement negotiations with the credit card company, or you can file for bankruptcy and request discharge of your credit card debt.

Contact the Law Office of Melanie Tavare About Discharging Your Credit Card Debt

A debt relief lawyer can help you achieve credit card debt forgiveness.  Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.