Credit card debt is nothing to be ashamed of. In fact, there are many circumstances under which people unintentionally max out their credit cards, such as delayed salaries, steep medical bills, credit card fraud, and more. If you’ve been subjected to constant phone calls or other harassment from collection agencies, Leinart Law Firm can protect you. Our experienced credit card debt attorneys will thoroughly analyze your case and offer viable solutions to help you eliminate the debt.
How to Reduce Your Credit Card Debt
There are several options to reduce your credit card debt. For example, you can try to do it on your own; however, be prepared to invest a lot of time and effort as this process is typically long and tedious. Another way is to have an attorney or debt settlement company negotiate with creditors on your behalf.
However, dealing with debt settlers directly can be rather risky due to the following reasons:
- Debt settlement companies may ask you to deposit money in a special savings account for 3 years or more before they settle all of your debts.
- Debt settlement companies will not be able to settle some of your debts — some creditors simply to not participate in these programs.
- Debt settlement programs often try to negotiate smaller debts first (because they are the easiest), while interest and fees on large debts continue growing.
- Debt settlement companies can ask you not to send payments directly to your creditors, and it can have a negative impact on your credit history.
- Some debt settlement companies are scammers who prey on people in a vulnerable financial position. If such a company is asking you to pay fees before they settle your debts and make unrealistic guarantees, then you should stay away from their services.
- Debt settlement can be very expensive – often by the time you pay the debt settlement company and the settled (and unsettled) debts, you haven’t really saved any money and may have even hurt your credit score even more.
The most reliable way is to hire an experienced credit card debt lawyer who will work with your case and suggest multiple options based on your unique situation. If you are looking for such professionals, consider getting help from Leinart Law Firm. Our credit card lawyers will offer you several options, including Chapter 7 or Chapter 13 bankruptcy filing supported by expert bankruptcy attorneys.
Credit Card Debt in Texas
If you have credit card debt in Texas, you should know the following:
- Under Texas state laws, credit card interest rates are limited to 18%, and these rates are re-evaluated from time to time.
- The Texas Debt Collection Act, which is based on the Fair Debt Collection and Practices Act (FDCPA), protects Texan consumers from harassment and fraudulent debt collector claims. According to the law, the debtor can stop the collectors from contacting them through a written request. However, the collectors retain the right to contact the debtor regarding specific legal actions and can continue to collect on the debt, including filing a lawsuit.
- Accumulated credit card debt in Texas can result in negative personal credit history, which significantly lowers a credit score.
- Texas laws provide a four-year period during which the collectors may sue the debtors in court. Under Texas credit card laws, the debtors can use the statute of limitations to protect themselves against debt collectors. However, if the debtor does not appear in the court, a judgment can be issued, even if the credit card debt is out of statute.
- Judgments allow the debt collector to place a lien or levy the debtor’s property. Texas exemption laws have more advantages for debtors than debt collectors, but the collectors can satisfy the judgments through wage garnishments and property seizure.
Taking into account all of these laws and regulations, our professional lawyers can relieve you from credit card debt in Texas. Please do not hesitate to contact us today and get a complimentary consultation from a credit card attorney with years of litigation experience.
Credit Card Debt Consolidation
If you are overwhelmed with debt and can’t even make monthly payments to your credit card bills, you may be searching for credit card debt consolidation services. But what are the benefits? Are there risks? It can be nerve-wracking to figure all this out while debt collectors are calling non-stop. Here is a broad overview of consolidation for credit card debt.
What Is Credit Card Debt Consolidation?
Credit card debt consolidation involves taking out one single loan to pay off multiple credit cards. Instead of multiple debts, you only have a single larger debt. This is done either through a loan company or through a specific credit card debt consolidation service.
There are several advantages to credit card debt consolidation. For one, the loan may be at a lower interest rate than your credit cards. This means you may save money over the payment period, and you can pay off your debt faster. Another benefit is that there is just one single payment to keep track of, rather than multiple credit card payments to different companies.
The primary disadvantage to credit card consolidation is that you still have to pay back 100% of your unsecured debt plus interest (which may be less than your interest rate prior to the consolidation but likely will still add up over time, often to more than the original debt).
Seeking credit card consolidation may not be the right fit for you depending on the extent of your debt and your income. Bankruptcy may be a better option based on your circumstances. For most people, Chapter 7 Bankruptcy will allow you to completely wipe out the debt (i.e. pay nothing further to the credit card companies) when consolidation would simply make a large problem not quite as large by shortening the payment period by a small amount.
It is important that you discuss this option with your attorney before seeking credit card debt consolidation services.
Contact Our Credit Card Attorneys For a Free Consultation
Leinart Law Firm features a team of dedicated credit card debt attorneys. Whether you’re thinking about filing for bankruptcy or you’re seeking an alternative solution to avoid collection lawsuits, hire a lawyer who can advocate for you.
Schedule a free initial consultation with our debt and bankruptcy lawyers to see your best options for staying debt-free. To get the debt relief you need, start by filling out the contact form at the top of this page. You can also email email@example.com or call our offices.