Is It Possible To Cancel Credit Card Debt?
You may find yourself to be in a bit of a situation when it comes to your debt. Too much spending in recent months has made it impossible to pay off even the minimum payment. Perhaps an unexpected emergency or job loss has forced you to use your credit cards just to get by. You are not alone. Is it possible to have some of your debt cancelled if you cannot pay the debt on time?
What Are The Odds Of Credit Cancellation
Your chances of getting your credit debt cancelled really depend on your current situation. Creditors want to get as much money as possible. You probably will be forced to pay your debts if you have the ability to. The best way to get out of paying credit card debt is to prove you have a severe financial hardship to your bill collectors.
Get any documentation that will help prove you are going through a hardship. Medical bills, your last pay stub or unemployment check or anything else that proves that you have more debt than income will work in your favor. Try to get a letter from your doctor if you have been recently disabled. Proving that you cannot go back to work may help your situation.
Write a letter to your creditors explaining your current situation. Conducting your correspondence in writing will give you a paper trail if your creditors deny any communications took place. Never expect your creditors to abide by any agreement that you cannot prove exists.
How Much Debt You Should Expect To Have Cancelled
Your situation will determine how much of your debt is going to be cancelled. Expect only a portion of your debt to go away if you have simply spent beyond your means. Spending too much money does not qualify as a hardship. However, they will reduce your payment to a point where you can afford to make monthly payments again.
Most of your credit card debt may be written off if you can prove that working in the short-term is going to be impossible. It will be hard to collect a debt if you legitimately cannot provide an income for yourself. Credit card companies can just write off the debt anyway. They will get a tax benefit from the bad debt.
Creditors may be willing to eliminate all of your debt depending on what kinds of income you are bringing home. Social security and disability benefits are not eligible for garnishment. This means creditors will have a harder time going after the elderly and the disabled.
Threaten To File For Bankruptcy
Most creditors are going to push as hard as possible for a full payment of the balance owed. However, they do not want to risk getting nothing in the event you go bankrupt. Using bankruptcy as leverage can often times get you the deal you are seeking on your credit card debt.
Threatening to go through with a bankruptcy filling could get you a bargain if your creditor is desperate enough. They know that you could just stall even if you don’t file for bankruptcy. Debts are not eligible for collection after a certain number of years. This is known as the statue of limitations on debt. That number varies in each state, but creditors usually have six years to collect a debt.
Dealing with a debt collector could work even more in your favor. Settling a debt with a debt collection agency can be done for as little as 10 percent of the original debt. This will result in a cancellation of 90% of your debts. Patience will definitely pay off when dealing with your creditors.
Having your debt cancelled is something you should certainly look into. You never know when your creditors will be willing to take less than you owe. This can certainly help you with a debt situation you don’t think you can manage on your own. Fill out the form to get more information regarding debt cancellation with a no obligation consultation. Call us to connect to talk to a representative on ways you can legally cancel your credit debt without resorting to bankruptcy.