Debtors in Oregon may try to settle their credit card debt for less than what they currently owe. They can choose to do so either on their own or with the help of a debt settlement company. However, there is no guarantee that credit card companies will agree to reduce a debt balance. If some or all of a balance is forgiven, it may need to be reported as income on a future tax return.

There are other ways to resolve significant credit card debt. For example, individuals could choose to speak with a credit counselor about ways to pay it off in full. A hardship waiver could result in lower interest rates and fees charged on an existing debt. Debtors might also get a lower interest rate simply by asking for one or by initiating a credit card balance transfer.

In most cases, consolidating debt or asking for a lower interest rate will result in less damage to a person’s credit score. Another issue to consider with a debt settlement is that it can be difficult to come up with the money to pay the agreed-upon amount. Typically, it must be paid in a lump sum by a predetermined date as opposed to in installments. Those who work with debt settlement companies may be charged high fees to negotiate their balances down.

Filing for bankruptcy may help a person get relief from credit card debt. Prior to filing, it may be a good idea to consult with a legal professional. A lawyer may explain the process of filing as well as the benefits of doing so, such as the ability to retain property or have debts discharged immediately. Furthermore, an automatic stay may be put into place during a bankruptcy proceeding.