Can You Settle Retail Credit Card Debt?

Retail credit cards can create some of the hardest debt to manage. Retail credit cards are often easy to acquire but in many cases come with astronomical interest rates. Because of this, getting behind on retail card payments can quickly lead to a deep hole of unmanageable debt. When your retail debt gets out of control, it can seem like your options are limited. Fortunately, it is possible to settle retail credit card debt.

Debt settlement is when a debtor negotiates an agreement with their creditor to pay off a smaller portion of their total debt. Normally, this only happens when the borrower has defaulted on the account. The creditor may be more likely to agree to a settlement if they feel they would not receive payment for any of the debt owed. However, if you know you are at risk of defaulting, you may be able to discuss settlement options with your creditor. A creditor knows that recouping some of the debt is better than none of the debt. Settlement can be resolved with a lump-sum payment or with a fixed number of payments.

Settling your retail credit card debt may be the right choice for you, but it is important to know the potential consequences of debt settlement. Your credit score will likely be significantly impacted by a settlement. While you are repaying the settled amount, the settlement itself will be seen as a negative mark on your credit report. Even if you close your credit card account, the settlement will impact your credit score for up to seven years. Because of this, it is important to consider all of your options before you opt for debt settlement.

You may also be hit with surprise taxes if the IRS gets involved with your settlement. If the settlement allows more than $600 to be forgiven, you will likely have to pay taxes on the amount forgiven. If this happens, it is possible for you to reduce your tax liability. If your liabilities exceed your assets, you could qualify as insolvent and therefore wouldn’t have to pay as much in taxes. Before you settle, you need to make sure you can afford the potential taxes of settling.

Of course, no one has the right to debt settlement. You have to be able to provide evidence to your creditors that you have a specific hardship or that your debt is unmanageable. Even if you do compile enough evidence to prove you are facing significant financial difficulty, your creditors still may not be willing to negotiate. If your creditors are demanding payment in full, you may be forced to look into other debt management solutions.

While you can certainly attempt to settle retail card debt on your own, it might be in your best interest to work with a reputable debt settlement firm like Veitengruber Law. As a respected New Jersey debt settlement law firm, we have relationships with creditors and know how to negotiate with them. Because retail credit cards are often facilitated by larger credit card or finance companies, an attorney will typically have better luck negotiating than you would on your own. A debt negotiation attorney knows all the ins and outs of the laws surrounding debt and how this will impact your specific situation. This is especially important if you have had legal action taken against you. Even if you’re facing a lawsuit over your retail debt, the right attorney can demystify the settlement process and help you get back on your feet financially.

Veitengruber Law is a full service debt negotiation legal team. We know how overwhelming credit card debt can be, but you don’t have to struggle alone. Our proven debt negotiation solutions can help you work towards eliminating your debts. We can help you decide if debt settlement is the right choice for you and help you explore all of your debt management options.

$40,000 in Credit Card Debt – What Should I Do?

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Especially around the holidays, coming to terms with the fact that you’re drowning in debt is definitely a humbling moment. The good news is that you have acknowledged that the problem exists and that you need to take steps to get out of debt. Many people who are deep in debt feel that they have “no way out.”

A common phrase heard from severely distressed debtors (owing tens of thousands of dollars or more) is that they cannot afford to hire an attorney. Oftentimes, debtors have ignored creditors for a long time without making any payments on the debt they owe. This, in turn, causes the total debt amount to rise even higher due to interest rates and late charges.

By the time you have reached out for help and have landed on this page, you could very well be swimming in the amount of debt you’ve amassed. Overwhelmed, afraid, embarrassed and helpless, you probably have no idea how to get out of this dire situation.

“I absolutely cannot afford a lawyer.”

This line of thinking is one that we would like to abolish – not because we want more clients, but because we are here to help you. The misinformation that NJ attorneys are simply “too expensive” to even consider is nonsense, and here’s why:

There are New Jersey bankruptcy attorneys who will work with you when it comes to their fees. The most important takeaway is that you will be better off financially in the end if you work with an experienced attorney. Free consultations, payment plans, and other negotiations regarding attorney fees are available, if you look for them.

“Maybe I can take care of this on my own.”

If you are being sued by a creditor for a significant sum of money, the very last thing you ought to be doing is going into court to represent yourself. Pro se defendants are not successful in court, and no judge will show you “mercy” because you didn’t hire an attorney. The truth is: you cannot defend yourself against a mountain of debt that you’ve simply failed to pay. You need a legal strategy to get you out of the mess, or everything you own will have a lien against it, your wages will be garnished, and you will end up with nothing.

Change your line of thinking from “There is no way I can afford an attorney,” to “Can I afford to NOT hire an attorney?”

NJ bankruptcy attorneys who actually want to help you find a way out of your mess DO EXIST. If you’re embarrassed and think we’ve never seen anyone with as much debt as you – think again. We’ve seen it all before! And not only have we seen it, but we’ve fixed it and saved thousands of people from losing everything.

You do have options! No matter how unbelievably bad you think your money problem is, there is always a solution, and you won’t find it without an experienced NJ attorney’s help.

While it’s understandable that you think you can’t afford to hire an attorney, the reality is that you can’t afford NOT to.

Call, write, or read about your options. It may not seem like it now, but there is a way out of even the worst kind of debt.

Image credit: Images of Money

What is Credit Counseling? Is it Right for Me?

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All of the terms associated with getting out of debt can get so confusing that you may end up not even understanding which service(s) you could benefit from. That’s why we’re putting out a Back to Basics series, explaining many of the most common terms we use regularly. Look for a new Back to Basics post every week.

What is Credit Counseling?

Just as a marriage counselor sits down with a married couple in order to evaluate the state of their relationship, a credit counselor takes a good look at your finances. He will then work with you to design a plan of action that will see you paying off your debts faster, spending less money on non-essentials, and putting more money into savings.

Typically, you’ll be seeking credit counseling when you’ve found yourself deep in debt with no end in sight, but you can also seek this kind of help if you don’t have a lot of debt but want to save for retirement, pay for your child’s college education, refinance a loan, and more.

During your credit counseling sessions, you will essentially receive an education about how to improve your ‘Money IQ.’ This means that credit counseling is not just a temporary quick fix; you will learn how to maintain financial stability for good.

Who Provides Credit Counseling Services?

Firstly, you should know that there are many credit counseling services in business today who use unethical and often illegal methods to attempt to get you the results you want.

It is important to choose wisely when looking for help with your finances. If you have a lot of debt and need assistance negotiating with lenders, look for a certified and experienced NJ debt settlement law firm.

Many credit counseling services will claim to be able to help you settle your debts in addition to providing you with credit counseling assistance. The truth is that they usually don’t have the ability and necessary knowledge required to negotiate with lenders or to help you file for bankruptcy. All too often, debtors end up even deeper in debt after working with a so-called ‘credit counseling company!’

When you work with a certified debt negotiation attorney, you’ll be in good hands. Look for a New Jersey credit counseling law firm that also specializes in debt restructuring, bankruptcy, credit repair, asset protection and real estate matters (especially if your debt has pushed you into or toward foreclosure.)

How Much Does Credit Counseling Cost?

While you may be able to find a company that will quote you a remarkably low price for their services, remember the saying: “You get what you pay for.” Also – keep in mind that these companies are routinely engaging in fraudulent methods (scams) that have them promising results to customers that they simply cannot, and will never, deliver.

Rather than paying an uncertified company for credit counseling services that’ll get you nowhere fast, consider paying someone who really knows what they’re doing and get a huge return on your investment!

It can be a knee-jerk reaction to balk at the thought of hiring an attorney, but when you find the right certified New Jersey bankruptcy attorney, he will always have valuable experience in the areas of credit counseling and debt negotiation.

Will you have to pay an attorney to teach you how to get out of your unfortunate financial bind? You definitely will – but it will be more than worth it when your debts are either completely discharged (via bankruptcy), negotiated down to much lower amounts, or refinanced and restructured.

Do you think you could benefit from some high quality credit counseling? Would your life be less stressful if your finances weren’t constantly on your mind? If you want to learn more about our credit counseling program – call today and we’ll set up your free consultation. [(732) 852-7295]

We are happy to consult with you in our offices or over the phone, and we look forward to helping you.

Image credit: Coalition for ICC

Is Fear Keeping You from the Financial Help You Need?

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One of the biggest hurdles for many of our clients is fear. This emotion can be a gigantic stumbling block when it comes to getting assistance in many situations because asking for help is hard. You may think that asking for help means you’ve failed at something, but that line of thinking will only magnify and worsen the problem at hand.

The reason you have trouble asking for the help you need is because we live in a ‘self-help’ society where, for many people, seeking assistance suggests a deficiency of some sort.

Regarding personal finances – it’s completely understandable that many of our clients come to us at the last minute. The hard truth about the extent of your money problems can be really difficult to come to terms with. Feeling out of control and unsure how to fix things, it probably has felt easier not to think about money at all.

When you’ve waited until the eleventh hour to reach out for help, you’re much more likely to be acting in panic-mode, which will cloud your thinking. It can also impair your ability to communicate your needs effectively, making everything that much more confusing for everyone.

Veitengruber Law advises anyone struggling with any of the following to stomp out FEAR and ask for help as early as possible:

  • paying your monthly living expenses
  • outstanding credit card debt
  • imminent foreclosure
  • looming sheriff’s sale
  • job loss (which will quickly lead to financial strain)
  • divorce as a displaced homemaker or stay-at-home-mom
  • overwhelming medical debt
  • identity theft that led to a financial crisis
  • deficiency judgement after short sale or foreclosure
  • any other personal or business financial burden

The earlier you come to us, the better we will be able to help you sort out whatever money situation you’ve found yourself in. We want everyone who needs us to have no fear about consulting with us. In fact, you should be proud of yourself for reaching out to a bankruptcy attorney who has the experience needed to turn your situation around.

With all of that being said – if you have let fear hold you back and you’ve come to the sudden realization that you’re about to be in real, serious trouble, we’re still here with open arms, ready and willing to go to battle for you.

Did you bury your head in the sand as the foreclosure sale date on your home passed? Does it feel like there can’t possibly be any way to save your home from sheriff’s sale?

Even when it feels hopeless, push your fear aside and call us. We’ll have an entire team working to save your property or solve whatever financial puzzle you challenge us with. Last minute solutions aren’t ideal, but when you work with us, they are possible.

We can help you file for NJ bankruptcy, which will automatically postpone a foreclosure, even if the Sheriff’s Sale is tomorrow! We’ll go over your financial details to determine the best plan of attack. No matter what money emergency you’re facing, Veitengruber Law is the team you want on your side. We prioritize legal emergencies. You will not be ignored, pushed to the bottom of the schedule, or left to play phone tag with our voice mailbox.

If you need help saving your home, getting out of debt, filing for bankruptcy, applying for a loan modification, or arranging the sale of your home via short sale – message us today or call us now (732-852-7295) to get the kind of assistance that gets results.

 

Image credit: David Goehring