Floridians have the seventh highest credit card debt in the country, with the average Floridian owing about $7,049 on their card. While this may not seem like a lot, this balance can quickly turn into overwhelming debt issues. Speaking with a lawyer can help you find peace and financial freedom.
1. Debt Settlement
One method for paying down an overwhelming amount of debt is to settle with your creditors. This will reduce the overall amount that you owe, making it easier to pay it all off. Typically, this process takes some time as you must negotiate with the creditor to agree on a settlement amount. Once you settle, it can take six months to three years to pay off the settlement amount. Hiring a lawyer can be well worth the expense because they can negotiate on your behalf with the creditors.
2. Debt Consolidation
If you find yourself paying multiple creditors, juggling different interest rates, due dates, and payment amounts can become overwhelming. One solution is to consolidate your debt. This gives you a single monthly payment, making it simpler to manage your debt. However, debt consolidation does not reduce the amount that you owe. If you have high credit card debt, it can reduce your interest rate, which can save you money in the long run. A lawyer can guide you on how debt consolidation can impact your legal liability.
3. Declare Bankruptcy
When debt becomes impossible to pay, a final last resort may be to final for bankruptcy. This is when you legally declare that you cannot repay your debts. There are two options for bankruptcy, Chapter 7 and Chapter 13. Each operates differently, has a different timeline, and can have a different impact on your overall financial future. Speaking with a lawyer before you file can give you valuable insight into your best options. Having a lawyer represent you through the process means you have someone advocating on your behalf in court.
4. Lawsuit Representation
When you fail to keep up with monthly payments, a credit card company may utilize several methods to compel you to pay. This could be making calls, working with a third-party collection agency, or even filing a lawsuit. Ignoring these efforts does not make the problem go away. Instead, it will only escalate the issue. If a credit card company fails to compel payment with other methods, it may choose to file a lawsuit. When this happens, you will receive a summons to appear in court.
While no lawyer can promise a favorable outcome, statistically, those with legal representation tend to fare better than those without. A lawyer knows about potential defenses and alternative solutions that you may not be aware of. There are also situations where the lawyer could argue that the lawsuit filing is entirely incorrect and should get thrown out.
5. General Advice
If you have never been in a situation where you struggle to pay off mounting credit card debt, you may find yourself at a loss and confused. An attorney can provide legal advice about your rights. They can also guide you on what to say and not say when speaking with a creditor or debt collector. For example, if the statute of limitations has run, you don’t want to reactivate your debt liability by saying the wrong thing to the creditor.
Consult With a Lawyer About Your Debt Issues
If you struggle with card debt issues, it is time control of your financial future. Speaking with a lawyer can give you insight into your options. You can then consider all courses of action to determine if consolidation, settlement negotiation, or declaring bankruptcy is best.
Schedule a consultation to speak with one of our attorneys and find out how they can help you with your credit card debt.
