New credit card debt negotiation program reduces overall balance owed on credit cards and lowers monthly payment.
Online PR News – 10-February-2010 – – The Law Offices of Edwards & Gerlt have launched a Credit Card Settlement Program to supplement its California loan modification services.
“Times are tough right now. Many of our clients have lost their jobs or have had a reduction in their income. But bills, such as credit card payments, are not reduced and just keep coming every month,” states David Gerlt, partner with Edwards & Gerlt.
Edwards & Gerlt, based in Southern California, are skilled at working with those that are having temporary financial difficulties. By negotiating a Credit Card Debt Settlement or a California Loan Modification, Edwards & Gerlt are able to reduce monthly expenses to a more affordable amount.
Gerlt continues, “When things are tight, borrowers have to prioritize how they pay their creditors. Generally the mortgage and the car are the first to get paid, leaving any excess funds for other bills.”
“These other bills usually include credit cards, retail store cards and medical bills. If regular monthly payments are not made on this unsecured debt, the borrower is then hit with increased interest rates and late fees which can quickly inflate their balance owed. As a result, the borrower can get so far behind that they stop even making partial payments on that debt, so they can continue to pay higher priority obligations.”
“But these debts cannot be ignored forever, and eventually the creditors or their collection agencies will file suit, which may eventually result in property liens or even wage garnishment.”
“With our Credit Card Debt Settlement program we will negotiate with the unsecured creditors on behalf of the borrower to reduce their outstanding debt and often extend their payments over 6 to 36 months.”
Credit Card companies are frequently motivated to settle for a debt reduction if the debtor can show financial hardship. Also, creditors know that if the borrower is under financial hardship and chooses to file bankruptcy, unsecured creditors would very likely receive pennies on the dollar or even nothing.
If the borrower is able to settle with the creditors and make payments towards the settlement amount, the debtor reduces the outstanding balance and avoids the long and drawn out process and credit damage from filing bankruptcy or having judgments against them.
“Our Credit Card Debt Settlement program creates a win-win situation for both sides in the sense that the borrower is able to make regular payments on a smaller debt, and the credit card companies are satisfied to be receiving the payments. Settling their unsecured debt can be combined with a home loan modification to create an overall financial situation that the borrower can manage,” concludes Gerlt.
This article is informational and not intended as legal advice. For more information about our Credit Card Debt Settlement program or modifying your home loan, please call Edwards & Gerlt for a FREE consultation at 877-701-6637 or go http://www.aboutcalifornialoanmodification.com/Credit_Debt_Settlement_Attorney