Jacksonville Credit Card Debt Lawyer
Find Your Financial Freedom With Florida Debt Relief Attorneys
Credit card debt is one of the leading causes of financial insecurity across the United States. The average American carries over $8,000 in credit card debt. The total credit card debt in the U.S. recently hit $930 billion, breaking the previous $870 billion peak the country hit during the 2008 financial crisis. The brunt of the debt is heavily skewed toward younger Americans, and younger Americans (aged 18 to 29) have a 76 percent higher delinquency rate than the rest of the population. It is far too easy to fall into a cycle of maxing out one card, facing mounting interest rates, falling behind on payments, transferring the balance to a new card, and then starting the process over again.
With the help of a Florida credit card debt attorney at Albaugh Law Firm, you can break the cycle. Our Jacksonville credit card debt lawyers will evaluate your financial circumstances and your needs, identify debt relief options you are eligible to pursue, and help you chart the strongest path forward toward a brighter financial future.
Options to Reduce Credit Card Debt
If you are struggling under a mountain of credit card debt, you could have several options to pursue to reduce your obligation, get some breathing room, and find your way back to financial security. Options for reducing the burden of credit card debt may include:
- Transfer balance card. While opening a new credit card may seem counterintuitive, there are balance transfer cards that are particularly useful in reducing obligations on a high-interest card. Transfer balance cards typically offer no interest for 18 to 21 months. Transferring your balance from a high-interest card to a no-interest card allows you to start directly paying principal rather than continuing to accrue or barely meet the interest. You will likely have to pay a startup fee, and there is a limit on the total amount you can transfer. Additionally, the limit and the length of the interest-free period may depend on your credit score. A transfer balance card makes sense when you can pay off the principal during the 18 to 21-month period, and the amount you save on reduced interest offsets the transfer and startup costs.
- Loan consolidation. Debt consolidation generally refers to the process of taking out a new personal loan to repay the amounts owed on all your other debt and then proceeding to pay off the new loan over time. If your credit card interest rate is high, and you are able to get a low fixed rate on a personal loan, then it might be worth taking out the loan to pay off your credit card debts and proceeding with the personal loan payments after that.
- Debt settlement. Debt settlement is similar to loan consolidation but different in some key areas. A for-profit debt settlement company will agree to negotiate and settle your debt for you, meaning that they will essentially get your debt reduced by reaching a settlement on your behalf. In turn, you agree to continue depositing money into an account operated by the debt settlement company until you pay off the settlement amount. Debt settlement carries risks, including that they often require debtors to start putting money in their accounts before s settlement is even reached–meaning that they might not even satisfy their supposed end of the bargain while you are committing money each month. There are also a lot of predatory debt settlement companies. Speak with a qualified attorney before pursuing a debt settlement.
Eliminating Credit Card Debt Through Bankruptcy
If other debt-relief options fail, are unavailable, or are not optimal for your circumstances, you might want to consider filing for bankruptcy. Filing for individual bankruptcy under Chapter 7 or Chapter 13 puts an automatic stay on any collection efforts such as wage garnishment or auto repossession. You may be able to reorganize your credit card debt and other loans into a Chapter 13 repayment plan, lowering your monthly obligation and ultimately reducing the total amount you owe while paying back your debts over three or five years. You may be eligible for completely discharging all of your credit card debt in a Chapter 7 bankruptcy.
Talk to a knowledgeable Florida bankruptcy attorney to discuss your finances and options. Bankruptcy may be the best step for you and your family to find financial freedom.
Get Help From a Florida Credit Card Debt Attorney Today
If you are struggling with credit card payments and considering whether to file for bankruptcy, or if you want to explore your other options for consumer debt relief, call the Jacksonville debt relief attorneys at Albaugh Law Firm for effective legal help. We are dedicated to providing talented and capable service to our Jacksonville clients seeking financial freedom and security. Call the Florida credit card debt relief attorneys at Albaugh Law Firm today at 904-471-3434.