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Ohio Credit Card Debt Settlement Lawyers
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Ohio Credit Card Debt: Settlement & Relief
If you have significant credit card debt or have fallen behind on payments, you are likely trying to find a way out. Even making the minimum payments can be overwhelming when most of your money is interest.
Debt collectors may be hounding you or threatening legal action. While numerous debt companies promise to eliminate or settle credit card debt, generally, they offer only specific options and rarely consider your overall financial health.
Topics we’ll cover in the following video:
- What to do if you have a large amount of credit card debt
Most Debt Companies Don’t Work for You
Many debt settlement companies are not licensed to practice law in Ohio. They are spread across the country and have pre-existing relationships with debt collection agencies. They only present options that usually work best for the debt collection agencies when you call.
When these companies attempt to settle your credit card debt they often don’t get you the best offer, and you could have paid less. Other times, the deal they negotiate isn’t valid because they aren’t licensed in Ohio. Then, you’re left with no settlement and excessive fees.
Don’t let a debt company take advantage. Contact a debt attorney about your credit card debt.
Not Just Any Debt Lawyer
LHA founding partner Jeremiah E. Heck understands the complexities of credit card debt and can help you find relief.
Understanding Credit Card Debt
Credit card debt may be incurred in many ways. A consumer generally applies for a line of unsecured credit from a company, and they are extended a revolving credit card loan. Credit card companies expect this debt to be paid back, usually in the form of monthly payments.
Credit card companies generally report your account status to credit agencies monthly. This includes how much you owe, your total line of credit, and whether you are past due. If you charge more than your total line of credit or become past due on payments, it can negatively impact your credit history and overall credit score.
Credit Cards: Interest Rates & Fees
Nearly all credit cards charge interest called an “Annual Percentage Rate” or “APR.” That is an amount you have to pay if you carry a balance. If you pay your balance off in full before the interest is calculated each month, then you will not owe interest.
Interest rates vary among credit cards. Some may be as low as 13%, but others may be up to 29%.
Some credit cards also have fees in addition to the interest rate. You may have an annual fee, late payment fee, over the limit fee, returned payment fee, balance transfer fee, and cash advance fee. Some yearly fees can be $99 or more for specialty cards.
Types of Credit Card Debt
The type of credit card you qualify for may depend on your needs, credit history, and credit score.
Unsecured Credit Card Debt
Most credit cards are unsecured. That means that you are given a revolving credit card loan that you have to pay back. No deposit or collateral is collected before issuing you an unsecured credit card.
Credit Card Relief Options
You have multiple options for how to resolve credit card debt. The option that is right for you depends on your specific situation.
Credit Card Settlement
If you cannot pay back the entire amount that you owe, but you have some funds at your disposal, you may be able to settle your outstanding credit card debt. This will result in closing your credit card and paying less than you owe.
Refusal to Pay
If you do not have the money to repay your debts, you may refuse to pay them. This can result in a lawsuit being filed against you.
If you can’t repay your debts or need a reasonable payment plan for your budget, then Chapter 7 or Chapter 13 bankruptcy might be a good option for you. This will allow you to discharge most of your unsecured debt and get a clean slate.
Credit Card Debt FAQs
No matter how you address your credit card debt, it’s essential to understand the process and program requirements.
Does Paying Off Credit Card Debt Help Your Credit Score?
Paying off credit card debt can greatly impact your credit score. One significant part of your credit rating is how much available credit you have and how much of that credit you are utilizing. If you use a high percentage of your available credit, your score will be lower.
What Should I Do if I Have A Lot of Credit Card Debt?
You have a few options. If you have access to a lump sum of money, you may consider settling with that company for less than what you owe. However, that is rare for people with a lot of credit card debt. In many cases, your best option is to file bankruptcy.
How Does Credit Card Debt Settlement Work?
This is an agreement between you and the credit card company to resolve the amount that you owe them. If you cannot pay the entire balance that you owe and have fallen behind on minimum payments, credit card debt settlement may give you additional options. The credit card company may accept smaller payments or a lower amount than you owe.
What If a Credit Card Company Refuses a Settlement?
While it is usually in the company’s best interest to accept money when you offer it, some companies just want to play hardball. Other times, shady debt relief companies cannot operate where the credit card company is. If that is the case, you can discuss other options with your debt lawyer.