What are the best credit card debt payment strategies? 5 Answers as of August 04, 2010

My credit card debt is growing from month to month and I now think that bankruptcy is an option I must consider. Will bankruptcy take care of all my credit card debt? Are there other payment strategies that I should consider before turning to bankruptcy?

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David Nelson
David Nelson | David Nelson
If you're still trying to pay off your credit cards, pay off the lowest one first. Add the payment that you had been paying to that one to the next lowest balance and pay on that one until it is paid off, and so on and so on until they are all done.

Another option is to save up some money, especially if you're already in default or if the debts are charged off. In most cases you'd be able to pay them off with a settled amount for less than full payment but have a zero balance left over. You must call them and ask them if they'll take a certain amount of the balance as a final payment or a certain percentage. If they say yes, make sure that you get it in writing via fax or email and then you can send them the payment. The challenge is this: if the balance is $4000 and they want 50% then you'll have to have $2000 ready and available to mail immediately or do a check by phone.

They will want to be paid in most cases within one to two weeks.

If those strategies won't work for you, a bankruptcy is probably the right thing for you to do. A bankruptcy does not necessarily take care of all of your credit card debt, but for most of you it will. Situations where it won't include but are not limited to, if you used a credit card to pay off a tax debt and the tax debt would not be discharged in the bankruptcy (sometimes they are), then you're supposed to have to pay that credit card back. Or if you spent money on a credit account that you either knew or it's pretty clear that you must have known if you were watching your finances, then you may not be able to discharge that credit card in your bankruptcy.

However, if the credit card company wants to prove that you still owe the money, then that company must sue you in your bankruptcy in order to win. If they don't sue you, then they lose. You have a great chance of winning by the fact that most of the credit cards companies won't bother with the lawsuit even when the person filing the bankruptcy did know that they couldn't repay the money when they borrowed it.

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Answer Applies to: California
Replied: 8/4/2010
Fasel, Fasel, & Nefulda, LLP
Fasel, Fasel, & Nefulda, LLP | Thomas Fasel
With a few rare exceptions for cases involving fraud or luxury purchases immediately prior to filing bankruptcy, you can expect to get rid of your credit card debt in a Chapter 7 or Chapter 13 bankruptcy.

If you would like to discuss further, please contact me.
Answer Applies to: California
Replied: 8/3/2010
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
Bankruptcy would resolve the credit card debts. You could look at other options such as debt consolidation but those programs don't really work.
Answer Applies to: California
Replied: 8/3/2010
Kevin Michael Muldoon
Kevin Michael Muldoon | Kevin Muldoon
When you decide to file for bankruptcy, you should stop making payments to all of your credit cards. Chapter 7 will completely eliminate your unsecured debt (ie; credit card debt). Chapter 13 will put your credit card and other unsecured debt into a manageable payment plan.
In my opinion, bankruptcy is the best way to deal with large credit card debt.
Answer Applies to: California
Replied: 8/3/2010
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