Consumers in Oregon and around the United States continue to struggle with piles of debt even as the economy improves. For people who cannot afford minimum payments or are behind on regular monthly payments, the need for help to get things back on a better financial track is real. The best solution for one person is not likely to be the same as for another as every person’s circumstances are unique.
For some people, bankruptcy can offer the best future with a clean slate from the beginning. For others people with high credit card debt, negotiating with the issuing bank or creditor can provide just enough help to make the difference. Consumers who wish to take this approach should always request to talk to either the collections department or a manager from the beginning of the conversation. This can expedite the process by getting to a person with authority to make a decision earlier.
When looking to renegotiate credit terms or debt with a credit card company, it is best for the debtor to calculate all debt first and then decide on what options are possible. Potential solutions may be to offer a reduced amount to clear the debt, to change the date that payments are due each month to more easily fit into a work pay schedule or to lower interest rates. It is also advisable to offer an explanation to the creditor as to why a change is requested. All changes should be documented in writing.
If your financial challenges have you considering your consumer debt options, it may be helpful to discuss your case with an attorney. The right experience and knowledge of the law can make choosing the right option easier for you.
Source: Fox Business, “How to Negotiate Your Credit Card Debt,” Donna Fuscaldo, May 2, 2014