Credit card debt is an issue that affects millions of American consumers. Whether it’s an excess of medical bills, job loss or credit card fraud, there are many different circumstances in which someone may find themselves saddled with debt. If you’re overwhelmed by credit card debt and dealing with constant phone calls or other harassment from collection agencies, Leinart Law Firm can help. Our experienced Dallas credit card debt attorneys can thoroughly assess your specific circumstances and financial situation and provide practical solutions to help you reduce or eliminate debt.
There are several ways to reduce credit card debt. Attempting to do it on your own can be frustrating and time consuming. Although debt relief counseling can help you better understand your financial issues, it won’t eliminate credit card debt.
Having a debt settlement company negotiate with creditors on your behalf can seem like an appealing and easy solution, but it isn’t always in your best interest. A few reasons why you may want to reconsider this option include:
- Debt settlement companies may ask you to deposit money in a special savings account for three years or more before they settle all of your debts.
- Some creditors do not participate in debt settlement programs.
- Debt settlement companies often try to take the easy route by negotiating smaller debts first while interest and fees on larger debts continue to grow.
- Debt settlement companies may ask you to avoid sending payments directly to your creditors, which can have a negative impact on your credit.
- Debt settlement can be costly. Often, by the time you’re finished paying your debts and the debt settlement company, you haven’t really saved any money and may have hurt your credit score even more.
It’s also important to keep in mind some companies that claim they provide debt settlement services are scams that, unfortunately, prey on people in vulnerable financial positions. If you’re considering using a debt settlement company, make sure to thoroughly research them. If a company makes unrealistic guarantees or asks you to pay fees before settling your credit card debt, avoid them at all costs.
One of the most expedient and affordable ways to deal with credit card debt is to hire an attorney who can evaluate your case and provide you with multiple options tailored to meet your specific needs. Our debt relief attorneys at Leinart Law Firm have extensive experience helping clients find creative solutions for reducing or eliminating debt. We understand how stressful overwhelming credit card debt can be. Our skilled, compassionate team is here to provide you with options, which may include credit card debt consolidation or filing Chapter 7 or Chapter 13 bankruptcy. Regardless of the option you choose, our team of credit card debt attorneys, bankruptcy lawyers and experienced legal staff has your back every step of the way.
Under Texas law, maximum credit card interest rates are limited to 18%. These rates are re-evaluated from time to time. The Texas Debt Collection Act and federal Fair Debt Collection Practices Act (FDCPA) protect Texan consumers from harassment and fraudulent debt collection claims. Debtors may stop third-party debt collectors by contacting them in writing. However, they retain the right to contact the debtor regarding specific legal actions and can continue debt collection attempts, which may include filing a lawsuit.
In Texas, debt collectors have a four-year period in which they may sue a debtor in court. Although debtors can use this statute of limitations to protect themselves against debt collectors, if the debtor does not appear before the court, a judgment can be issued.
A judgment may allow a debt to be collected by placing a lien on a debtor’s property, wage garnishment or property seizure. That’s why it’s so important to have an experienced debt relief attorney to help you understand your rights and ensure they are protected. Our Texas credit card debt lawyers have decades of experience litigating these types of cases. We offer a free initial consultation, so you really have nothing to lose by contacting Leinart Law Firm.
Credit card debt consolidation involves taking out a single loan to pay off multiple credit cards with one monthly payment. This may be done through a loan company or a credit card debt consolidation service.
This option has several advantages and disadvantages. A debt consolidation loan may offer a lower interest rate than your credit cards, which means you may be able to pay off your debt faster and save money on interest. However, you still have to repay 100% of your credit card debt plus interest. Options such as Chapter 7 bankruptcy may enable you to completely wipe out unsecured debt such as credit cards and medical bills. Discussing all viable possibilities with your attorney before seeking credit card consolidation services can help you make an informed decision that meets your specific needs.
In most cases, yes. Although there are a few exceptions, most unsecured debt is completely wiped out in Chapter 7 bankruptcy. If you file Chapter 13 bankruptcy, you may pay only a small portion of your credit card debt and other unsecured debts. Typically, at the end of the repayment period, your remaining credit card balance is discharged.
Depending on the current state of your credit score and the method of debt relief you choose, it may go up or down. Getting a handle on mounting debt is always a good idea, but it’s important to choose wisely. Debt consolidation or debt management may have a positive impact on your credit fairly quickly as long as you continue to make required payments. Although debt settlement and bankruptcy may negatively impact your credit in the short term, it can be repaired with good credit management practices and financial responsibility after your debt is discharged.
Although it’s possible to negotiate with collection agencies and creditors on your own, the process can be complex and time consuming. A seasoned credit card debt attorney can help you avoid the stress that often comes with negotiating and reaching a settlement agreement. Our lawyers know how to use strategic, aggressive approaches to come to a fair resolution and maximize your debt relief opportunities.
At Leinart Law Firm, our team of credit card debt attorneys and bankruptcy lawyers are staunch advocates for our clients. To learn more about the debt relief options that may be right for you, schedule an initial complimentary consultation today. Please email us, fill out the contact form on our website or call 469-232-3328 in Dallas/Plano area or 817-426-3328 in Fort Worth. We’re proud to serve clients throughout North Texas.