Texas residents who rely on their credit cards to make ends meet after an unexpected setback like a layoff or illness sometimes find themselves in deep financial trouble. Revolving debt can be a convenient and straightforward solution to short-term financing needs, but making even minimum monthly payments can be a challenge when balances soar and income streams dry up. Credit card companies are generally aggressive when they are owed considerable sums of money, but they may be prepared to negotiate when their alternatives are writing a debt off or pursuing legal actions that offer no guarantees.
Debtors thinking of entering into negotiations with credit card companies would be wise to prepare thoroughly and gather evidence to support any claims that they plan on making. Credit card companies are generally dispassionate during these discussions, and they make their decisions based upon what is in their best interests. However, they may be willing to listen when their alternative options would likely see them recouping very little or nothing at all.
In some situations, credit card companies may settle for a lump sum payment that is lower than the total amount owed, but they are more likely to consider waiving late fees or other penalties. Creditors may sometimes agree to accept lower minimum payments for a specified amount of time, but such offers should be scrutinized carefully for undisclosed interest rate hikes or other hidden provisions that could leave debtors in an even worse financial position.
Their is rarely room for altruism in the business models of financial institutions like credit card companies, and accounts of personal tragedy, injury or illness are unlikely to illicit much in the way of sympathy. Attorneys with debt relief experience may assess the financial situations of those with unmanageable bills, and they could explain how filing for bankruptcy could lead to the discharge of all or a substantial portion of their debts and put an immediate end to creditor harassment.