608 Mabry Hood Road, Suite 202 | Knoxville, Tennessee 37932
Should a consumer try to settle credit card debt?
There are many unpleasant consequences that come with owing a significant amount of money to credit card companies. For example, a creditor may call at all hours of the day, or a debt collector may initiate the wage garnishment process after a certain amount of time. Credit card debt can seem overwhelming and make it feel impossible to get ahead. This is why some consumers in Tennessee explore the opportunity to settle their debt.
Settling credit card debt involves negotiating the balance down by working directly with the credit card company or a third-party acting on behalf of the credit card company. If the credit card company accepts the negotiated amount, it will stop the collection process after receiving payment. One drawback to this is that the creditor will likely expect payment within a short amount of time, often in the form of a lump sum.
In some cases, dealing with credit card debt through a lower lump sum payment may make the most sense. However, this is not always possible if the consumer does not have access to those funds. It may also help to consider that debt settlement will also have an impact on a person’s credit score, and there is no guarantee that a credit card company even wants to settle.
There are a many ways to deal with credit card debt, and settlement is just one option. For those who are considering this choice, it may be beneficial to consider all options before moving forward with a final decision. Some Tennessee debtors may find that it makes the most sense to consider a more permanent step, such as filing for bankruptcy.
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608 Mabry Hood Road, Suite 202
Knoxville, Tennessee 37932
William E. Maddox, Jr. LLC, Attorney at Law is located in Knoxville, TN and serves clients in and around Knoxville, Oak Ridge, Louisville and Anderson County.
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