Credit Card Debt Settlement Versus Bankruptcy (And The Winner Is?)

Getting into debt seems like one of the easiest things you can do. Most credit card companies make it too easy to get more credit and thus further into debt you go. If you are like so many other people and use credit cards a lot then you know how easy it is to become overwhelmed with debt. Getting out of debt should be your number one priority. Make a plan so that you are always working towards paying of your debt. Changing the way you use your credit cards can help you to avoid staying into debt.

You can read the story using the search term “Erie debt collection companies uk sued; accused of using bogus hearings and fake courtroom to collect from consumers” and see for yourself. The judge wore a beautiful black gown but he was still a frog!

Stop paying on all the card accounts because it takes six months for your information to get to a collector so just be patient but if you have stopped paying already that’s even better. Use waiting time to practice your phone etiquette.

In California I am not currently aware of people being issued arrest warrants for owing purely personal debt but be aware of situations that could amount to debtor’s prison. Courts always maintain that they put people in jail for violating a court order and not for owing debts and thus they get around the constitutional prohibitions. Some creditors in some states have used this loophole to just get a judge to order payment of the debt and when payment is not made then the judge issues an arrest warrant for failing to follow a judicial order. This amounts to the exact same thing as a debtor’s prison.

How you pay the debt is another key factor. First, find out if they are willing to accept monthly payments to pay the debt and if so, how much per month would it require and how much of the debt will be taken off if you pay as agreed upon. Also, you should find out how much of the balance will be taken off if you pay them in full with one payment. This type of payment is desired by collection agencies because they are getting money quickly and this reduces the risk of having to call back for payments or payments bouncing in the future due to change in checking accounts. Use this tool to negotiate your balance owed as it should give you a much clearer picture on what it would take to pay the debt.

Pay attention to any inquiries that are being made for your credit score and credit report. Anytime someone pulls up your credit, the inquiry is noted on your report.

Being in debt is a highly stressful thing. Getting continuous telephone calls from debt collectors can just add to the emotional strain. If you want to stop the debt collector’s calls, you can negotiate your debt through the mail.