How Much Credit Card Debt is Enough to Seek Debt Settlement?

Are currently struggling with credit card debt? If you are having trouble making monthly payments and have become delinquent, or you are only able to pay the minimum and have your total debt increasing significantly due to interest, you may be considering debt settlement. Yet you might be wondering if you owe enough in credit card debt for debt settlement to make sense. As such, you might be seeking information about how much credit card debt is enough to seek debt settlement. There is no single answer to that question. Whether debt settlement is a smart option for you will depend on factors specific to your financial circumstances. Our Lilburn debt settlement attorneys can provide you with more information.

Everyone Has a Different Financial Situation 

No single person’s financial situation is the same as another’s. Accordingly, there is no specific amount of credit card debt that is “enough” to consider debt settlement. For some individuals, it might make sense to negotiate a settlement for $5,000 of credit card debt. For another set of individuals, debt settlement might be the right decision for $50,000 or more of credit card debt. It will depend on your income and assets, how much you can afford to pay in a settlement, and how much you owe.

According to data from the Consumer Financial Protection Bureau (CFPB), the median and average amount of credit card debt an individual has when they enter into a debt settlement agreement changes over time. In recessions, people tend to settle lower amounts of debt. Differently, when the economy is thriving, more people tend to enter into debt settlement agreements to seek relief from much higher amounts of debt. Debt settlement averages also vary based on a person’s socioeconomic circumstances, employment, and related factors.

Debt Can Be Settled Regardless of Whether You Are Current or Delinquent 

If your debt is stressful and overwhelming to you, regardless of whether you are current or delinquent on the debt, you may want to consider debt settlement.

With debt settlement, the CFPB suggests that debtors end up paying just over 50 percent on average of the total amount of their debt in order to settle it. If you believe debt settlement might make sense for you, you should discuss your personal details with an attorney who regularly handles debt settlement negotiations in Georgia.

Contact Our Georgia Debt Settlement Lawyers for Assistance 

If you are considering the possibility of debt settlement because of credit card debt, it is important to seek legal advice. As we discussed above, there is no particular amount of credit card debt that means you should be thinking about debt relief options. Whether or not debt settlement is right for you will depend on your individual financial circumstances. You can discuss all of those details with one of the experienced Georgia debt settlement attorneys at Konn Law Firm LLC today. We can learn more about your debt situation and can assist you with debt settlement negotiation if you are ready to move forward. Contact us today for assistance.

Source:

files.consumerfinance.gov/f/documents/cfpb_quarterly-consumer-credit-trends_debt-settlement-credit-counseling_2020-07.pdf