No San Antonio Bankruptcy Pay Off Credit Card Through Settlement Debt Negotiation

Credit card debt is causing you pain.

Your stomach is turning over and over as you realize you cannot pay the minimum payments, much less pay the cards off.

Settlement debt negotiations can eliminate credit card debt.

For fear of the calls, letters, etc. from collectors, debtors usually do not think of just not paying their credit cards . They also have been told that their credit will be ruined with credit scores permanently impacted.

What the credit card companies don't tell you is that they would rather settle with you for a few more pennies on the dollar than sell the credit card loan to a debt collector. You see selling to a debt collector allows the investor who bought the debt to make money, not the credit card company or bank.

Settlement debt negotiation to pay off credit cards makes the bank or credit card company more money than their other alternatives.

Most debtors will default on the debt and go bankrupt so none of them, bank or debt collector, make any money. So the window opens for settlement debt negotiation.

To obtain more money from the debtor, it may even be possible to get the debt acknowledged to a credit reporting agency as paid as agreed or settled and not the notation of charged off. Most people are not aware that banks and other regulated lenders must charge off a retail loan, like credit cards, when it becomes 180 days past due. Now that does not mean that the credit card loan is not still owed by the debtor but it means that the loan has become almost worthless to the bank.

Banks normally sell the credit card loans to a collection agency. Collection agencies drive a hard bargain and buy the credit cards balances for pennies on the dollar.

Knowledge of these rights can be both powerful and profitable for you as the debtor. There are other alternatives that you should learn more about if you are faced with not being able to pay your debts.
James (Jim) Montgomery, recognized as a Texas SuperLawyer, explores how bankruptcy and chapter 13 plans can result in paying off credit card debt through debt settlement negotiation in his blog. His paper, "3 Ways To Stop Creditors In Their Tracks can be downloaded for free.