How Do You Negotiate Credit Card Debt?

Negotiating credit card debt yields varying results. Depending upon the facts of your situation, a credit card lender may consider offering terms or reductions which you find favorable. There are also lenders that refuse to negotiate with you despite what you think is a fair offer. This often leads to frustration for the debtor and a stalemate between the two parties—you are unwilling to pay their exorbitant fees and interest, and they are unwilling to compromise. Ultimately, you may find yourself in a stalemate with your lender.

Breaking The Stalemate

While you may be able to negotiate credit card debt on your own, we recommend you use a third party to do it—this is true whether it’s our law firm or another law firm or service. The primary reason we recommend you have someone negotiate credit card debt on your behalf is simple: leverage. One example of leverage in a credit card debt negotiation is bankruptcy. Often, you do not have to file bankruptcy. Just the legitimate threat of it changes the conversation.

Change The Credit Card Debt Negotiation

When you employ The Layton Law Firm to negotiate credit card debt for you, we will talk to you about bankruptcy as well. There are a few reasons for this. First, we want to provide you with the guidance you deserve and need when making large financial decisions. Second, if you do qualify for bankruptcy, it changes the credit card debt negotiation with your lender. Lastly, if your lender is communicating not with you but instead with a bankruptcy lawyer, they know bankruptcy is imminent. In most bankruptcies, creditors get nothing or pennies on the dollar. When compared to having the entire debt discharged in bankruptcy, your lender may reconsider their definition of a fair debt settlement.

The Reality Of Credit Card Debt Negotiation

Keep in mind that if you can reach a negotiated debt settlement with your creditor, they will want the full settlement amount paid over a truly short period of time. This is part of what they are bargaining for in exchange for deeply discounting the value of the debt. This means you may need access to a significant lump sum to reach a favorable agreement. Our office can assist in sorting through this end of the negotiation, and in most cases, we are able to work out a payment arrangement our client can honor in exchange for cancellation of the debt.

Speak With a Credit Card Debt Negotiation Lawyer Today

If you would like more a more thorough answer to the question “How do you negotiate credit card debt?” give us a call at 704.749.7747. Or, click HERE to request a consultation. The consultation is free and can be done over the phone. We look forward to helping you get back on the path to financial independence.