Plagued By Credit Card Debts? Know Your Options

Plagued By Credit Card Debts? Know Your Options

You got credit card debts that you cannot pay. Combined with steep interest charges, attorney’s fees and collection costs, you proposed an amount to settle credit card debt but the collector rejected it and offered you an outrageously high payoff amount or else they will file a lawsuit. The fact is, debt collectors have a way of instilling fear and hopelessness to delinquent debtors across the country with their empty threat, lies and deception. Panicking should the last thing on your mind.

While the possibility of being prosecuted over credit card debt is scary, after all, they can repossess your assets to satisfy credit card debt if authorized by the court, it does not have to be. There is another option that will allow you to take some control over a situation that is seemingly getting out of hand.

Almost every court in the country has some form called Motion To Set Payments. This will allow you to file documents with the court to grant a monthly payment on a judgment. These documents may include your proof of income, debts, etc. When you have established that you can only make monthly payments on your credit card debt and the motion is granted, the card company cannot enforce any actions like wage garnishment, executions or seizures as long as you are current.

In layman’s term, you have the power to set the repayment schedule at a price you can afford, if you play your cards right. The key is to be completely honest with the court and provide a reasonable payment amount based on your current financial standing. While this does not make your credit card debt disappear, you can still lead a normal life and pay your debts at a price you can afford without any debt collectors bullying you into paying outrageous payout amount.

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