Lawyer Helping Clients in Oklahoma City Eliminate Credit Card Debt
Millions of Americans have credit card debt, but some have accrued far more than others. Unfortunately, it’s easy to fall into credit card debt, but it’s much harder to climb out of it. The moment you miss a payment, you may start to receive endless calls and letters from the credit card company, which only makes the situation more stressful. If you are in this situation, it’s important to act quickly to take control of your finances.
It may seem impossible to dig out of credit card debt, but it’s not. Let the attorneys at Mitchell & Hammond help you explore the credit card debt relief options available to you.
When Should You Seek Credit Card Debt Relief in Oklahoma City?
Having credit card debt is not enough to justify seeking financial relief. If you are able to make payments on these debts, continue doing so until they have been repaid. However, you may need to seek credit card debt relief if you meet one of these conditions:
● You will not be able to repay your credit card debts within five years even if you cut back on spending.
● Your debts are equal to 50% or more of your gross income.
If you meet one or both of these conditions, it may be best to seek credit card debt relief.
Should You File For Bankruptcy to Eliminate Credit Card Debt?
Filing for Chapter 7 or Chapter 13 bankruptcy is one way to manage credit card debt. Filing for either type of bankruptcy will trigger what is called an automatic stay. This is an injunction that temporarily prevents creditors—including credit card companies—from taking action to collect debts from you. This means filing for bankruptcy will temporarily protect you from harassing phone calls and legal action related to your credit card debt.
If you file for Chapter 7 bankruptcy, some of your personal assets will be liquidated in order to repay your debts. The debts that are repaid are prioritized by the court, and credit card debts usually fall at the bottom of the list. This means that credit card companies may or may not receive money from the liquidation of your assets. However, this won’t matter because your credit card debt is discharged at the end of your bankruptcy case.
Filing for Chapter 13 bankruptcy is another option. If you file for Chapter 13, you will need to create a repayment plan that outlines how you will repay your debts, including your credit card debts. You must follow this repayment plan for three to five years, which means you will make payments every month that will go towards your credit card debt. At the end of the plan, the remaining balances on your cards are discharged.
Other Credit Card Debt Relief Options in Oklahoma
Both Chapter 7 and Chapter 13 bankruptcy can help you get rid of credit card debt. But, there are negative consequences to filing for bankruptcy, which is why it’s important to consider other options first. Some of the most popular alternatives include:
- Debt consolidation loans
- Repayment plans
- Debt settlement
A debt consolidation loan is a low-interest loan that is used to pay off credit card debts. This option is ideal for people with multiple high-interest credit card debts. Because the debt consolidation loan has a low-interest rate, you can save money on interest over time.
You can also hire a third party to work with your credit card companies to create a repayment plan. The third-party will try to get the credit card company to eliminate late fees and reduce interest rates. If the terms of the plan are approved, you will need to comply with the repayment terms in order to avoid additional penalties.
Debt settlement is another option. If you choose this option, a debt settlement attorney will negotiate directly with the credit card companies on your behalf. The goal of these negotiations is to get the credit card companies to settle your debts for less than what you owe. If the negotiations are successful, you will be able to eliminate your credit card debt by paying the negotiated lower balance rather than the full balance.
Schedule A Free Consultation With Our Credit Card Debt Attorney in Oklahoma City
Are you drowning in credit card debt? It’s important to understand that help is available. Contact the skilled credit card debt attorneys at Mitchell & Hammond as soon as possible to discuss your case. We will review the details of your financial situation and help you understand the way to deal with your credit card debt. To schedule a free consultation, call 405-216-0007 or submit your information via the form on this website.