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Credit Card Lawsuit Info: Settlement Negotiation With Creditors

Credit Card Lawsuit Info: Settlement Negotiation With Creditors

Leaving your old credit card debt unpaid for months could easily turn into a lawsuit. Thousands of people across the country are embroiled in credit card lawsuit and if you do not want to be a part of a growing statistic, you need to learn what you can do to avoid the case from reaching the court.

The fact is, taking the credit card lawsuit to court is costly for both parties and often, creditors are willing to work out a deal rather than hiring their own attorneys and prepping for the case. There is always the real possibility of your creditor losing more money rather than negotiating a deal so it’s likely that they are open for settlement. On the other hand, if you lose the case, you will not only pay for the outstanding balance plus interest and penalty charges, you will also pay for your creditor’s legal fees so negotiating is beneficial for both parties.

To start the negotiations, you need to reach the person who has authority to make such decisions within the credit card company you are tied in. Don’t just call the customer service and talk to a representative. If your calls are being ignored, don’t panic. You are bound to receive a settlement offer from your credit card company and reach them after.

You can give them an idea how much you can afford to pay per month and if things go well, keep everything in writing during the final phase of the negotiation. Remember, some creditors are very sneaky. You might think you are negotiating a better deal but they are just readying the credit card lawsuit right under your very nose. So by keeping everything in writing, they are forced to stand by their words, in case they’re trying anything funny, that is.

However, if you and your creditor are not able to agree on the amount and the negotiation falls apart, the credit card lawsuit is likely to continue. Hiring a lawyer can be quite costly and if such is the case, you can represent yourself in court. For an in-depth guide on fighting debt claims and winning your case without hiring an attorney, click here.

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