Categories: Debt Settlement

Debt Settlement- The Best Way to Avoid A Lawsuit

Are you struggling to pay credit card bills and it has gotten to the point that you are being called several times each day? If you fail to communicate with creditors they assume you are trying to avoid paying your debt and this can lead them to file a lawsuit against you. A big mistake that many people make when they receive notices of being sued is ignore it because this can lead to fines and greater action being taken again them. Debt Settlement is one of the first avenues you should seek long before you ever receive a summons.

If you are sued or receive a summons from creditors and don’t acknowledge it in the given time frame, you will end up with a default judgement on your record. By starting debt negotiation as soon as you begin struggling to pay your credit card debt, you will avoid the creditor ever taking this action against you. Too many people feel ashamed when they are not able to meet their monthly payments and therefore fail to communicate and somehow think ignoring it will make it go away, but this just doesn’t work.

When you’re over your head in credit card bills and even making the minimums has become difficult, begin seeking out debt relief immediately. By waiting you do risk being sued but even if it never gets to that point, the credit card company is adding interest daily. This could mean you’ll end up paying thousands of dollars in late fees and additional interest charges. Seeking a professional that can help you negotiate the debt and nail out a plan of action is your best bet. Using a settlement arrangement you gain the ability to continue paying the creditor but at a lower interest and with the fees knocked off.

You may be tempted at some point to try the Debt Settlement on your own rather than hiring a professional to work with you but this is not a good idea. For one, you are much too emotional to deal with these creditors who have no doubt been calling you many times each day or perhaps they began calling neighbors or your work. This can cause you to lose your cool and you will never get anywhere. A settlement specialist can help you figure out a way to talk to the creditors and to open your eyes to options you may not have thought about.

Of course, if you take action to bring the credit card debt down, you’ll have less to worry about. Sit down and take an inventory of how much money you are bringing in right now and how much your credit card bills are along with your other living expenses. You will probably have a big deficit which is why you have not been making the payments in the first place. At this point is when you need help to get the debt settled so that you are not charged anymore late fees or interest penalties.

Depending on the amount you owe to a credit card company they can and do issue summons if it is a high enough amount. Therefore, you need to always communicate with them when you are not able to pay. If you have too much debt and not enough income, seeking a settlement professional is the best way to get the total owed to a more manageable amount. The sooner you call a debt settlement professional the best!