Making your debts go away quickly comes at a cost. The best-case scenario is that you win the lottery, inherit money from a relative, or land your dream job; if that happens, you will gain money but lose friends, either because they are jealous of you or because your newfound fortune brings out your worst self. The other ways to get rid of debts also come at a cost. You can file for bankruptcy or settle your debt, but in either case, this will be to the detriment of your credit score. As with any financial decision, the decision to settle your debts for a lump sum, so that the credit card company forgives the remaining balance, requires you to weigh the benefits and the costs.
Things have gotten so bad that some people have started to wonder if credit card forgiveness is even worthwhile, given all the other debts you will still owe if the credit card company forgives your credit card debt, and given that forgiving one of your debts does not solve the ongoing problem of low wages and high prices. If you are in despair about your financial situation and are wondering what relief, if any, credit card forgiveness will bring, contact an Oakland lawsuits, collections, and creditor harassment lawyer.
Waiting to Address Your Credit Card Debt is Costly
Settling your credit card debt will not solve all your problems, but inaction will make the problem worse. Credit cards are such a dangerous source of debt because the compound interest piles up quickly. When you only make the minimum payment each month, which equals about 3% of that month’s balance, your outstanding balance increases quickly, even if you do not make any additional purchases. By settling your credit card debt, you get a fresh start, at least on one of your debts. Never mind the dip in your credit score; carrying a high balance on your credit card does not do wonders for your credit score, either.
Debt Consolidation Loans are for People Whose Financial Situation is Better Than Yours
People who have never experienced your level of financial hardship will often advise you to borrow a debt consolidation loan to pay down your credit card debt. They are assuming that you can get a debt consolidation loan. If your finances were where you could qualify for affordable loans, you wouldn’t be charging groceries and gasoline on your credit cards.
If Not Credit Card Debt Forgiveness, Then What?
Credit card balance transfers offer an interest-free grace period. If you have employment income, then you can pay down your credit card substantially because the card you transferred your balance to begins charging interest. Another option is to file for Chapter 7 or Chapter 13 bankruptcy. Credit card debt is eligible for discharge in a bankruptcy case.
Contact the Law Office of Melanie Tavare About Getting Out of Credit Card Debt
A debt relief lawyer can help you if you are among the many consumers for whom making the minimum payments on your credit card is becoming increasingly burdensome. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.
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