You may be asking why credit card companies would be willing to settle the debt for a fraction of what is owed them, and the answer is simple: better something than nothing. Gershfeld Law Group deals with these situations all the time. And we’ve seen that credit card companies are very aware of the fact that getting you to pay the debt once it has gone delinquent is slim to none. Credit card companies makes tons of money off the interest you pay so they want you to keep making minimum monthly payments to them forever. However, when you start missing payments because you can’t afford the payment given your hardship, the credit card companies start losing money on the predatory interest rates they are subjecting you to. At that point, they begin to get concerned and become open for negotiation. The credit card companies know all too well that bankruptcies are on the rise in todays’ difficult times, and they would much rather collect something than nothing. It’s a case by case scenario and the first step is to have an expert look at your situation.
Gershfeld Law Group understands the suddenness of debt and how rapidly it can spiral out of control. We’d love to talk to you about how we can help bring relief and positivity to your financial situation. Call us or email us – we’re here to help!