The Benefits of Hiring a Credit Card Debt Lawyer
8 MIN READ
Published June 27, 2023 | Updated September 25, 2023
It's possible to clear your credit card debt on your own if your debt isn’t substantial. However, if you have a lot of debt, are being sued, or are considering bankruptcy, hiring a credit card debt lawyer may be in your best interest.
Credit card debt is prolific across the country. In fact, eight in 10 Americans have at least one card, with an average credit card debt of $5,9105 per individual. Having an expert in your corner to help you succeed in dealing with your debt once and for all can prove a major benefit.
Many borrowers wind up deep in credit card debt, either because of circumstances beyond their control or because they're too liberal with their use of credit cards. If you're grappling with a lot of debt and don’t see a way to pay it off, you might want to seek out a credit card debt lawyer to help you.
Understanding Credit Card Debt and Legal Assistance
When not dealt with at the earliest, credit card debt can snowball. If you fail to pay debts and creditors pursue legal action, a lawyer for credit card debt can not only help you clear your debts but can also help you minimize legal risks.
What is Credit Card Debt?
Credit card debt is any outstanding balance you carry on your card. Unless you pay off your entire balance in full each month, this debt will continue to accumulate quickly. There are several reasons why your credit card debt may be too high:
- Using too many credit cards
- Making impulsive purchases
- Exceeding your credit limit
- Making minimum payments
- Failing to make monthly payments
Not paying any more than the minimum credit card payments due each month is one of the main reasons why your credit card debt may be too high. Once these unpaid balances start accruing interest charges, paying them off will take a lot of work.
Why Seek Legal Assistance for Credit Card Debt?
A credit card debt lawyer can help you find the right solution to pay off your debts and minimize your legal risks. They can counsel you in case of debt collection lawsuits and protect you from unrelenting phone calls and harassment from debt collection agencies.
“If you feel you’re at risk of being sued, have assets to protect, and are unable to pay your creditors, an attorney may be the right way to go," advises Teresa Dodson, CEO and Founder of Greenbacks Consulting LLC.
An attorney can create personalized debt defense plans based on your individual circumstances to help you avoid legal recourse from your debts.
Here are a few of the top ways lawyers can offer you legal assistance with your credit card debt:
- Offer you personalized legal advice
- Defend you against illegal collection practices
- Educate you about the Fair Debt Collection Practices Act (FDCPA)
- Defend you against credit card debt lawsuits and other legal action taken by collection agencies
Finding a Credit Card Debt Lawyer
There are several ways to find a reputable, experienced lawyer specializing in credit card debt. Consider your budget and your specific needs when searching for a lawyer.
Tips for Finding a Credit Card Debt Lawyer Near You
Here are some tips to help you as you search for credit card lawyers:
- Include your city or area’s name in your search query instead of just "credit card lawyers near me."
- Ask family and friends to suggest experienced attorneys they've worked with in the past.
- Ask a lawyer you know to refer you to a law firm specializing in credit card debt or consumer law.
- Check with your state bar association or the American Bar Association to find law offices in your area.
Finding Free Legal Services for Credit Card Debt
Some lawyers may charge a reduced fee or offer free services for low-income clients. You may also find free representation through legal clinics or legal aid offices in your area. If you meet certain criteria, these lawyers may offer free legal services in your state. You can also consult your local JAG office if you're a service member.
Finding an Affordable Credit Card Debt Lawyer
Fees charged by credit card debt lawyers vary depending on various factors, such as the complexity of your case. An attorney may decide to charge a flat fee per debt, a percentage of savings, a percentage of the total debt, or an hourly rate after your case evaluation. When deciding which lawyer to work with, ask about their fee structure and if they offer alternative fee arrangements such as sliding scale fees or payment plans.
Finding the Best Credit Card Debt Lawyer
Before hiring a lawyer, ensure they're in good standing and haven't been disciplined by the state bar organization. You can check by calling the state bar organization where the attorney is licensed or searching for their name on the bar website.
To find the best credit card debt attorney, ask questions such as:
- What types of debt do you work with?
- How many credit card debt cases have you represented in the past?
- Do I need to pay you if I lose the court case?
- Do you charge an up-front fee?
- Can you refer me to an affordable attorney if I can’t afford your fees?
4 Options for Dealing with Credit Card Debt
Getting out of credit card debt requires clear goals, the right debt relief solutions, and a willingness to change the habits that led to debt in the first place. Here are four effective solutions to help you clear your debt.
1. Debt Consolidation for Credit Card Debt
If you have multiple credit cards with high-interest rates, credit card debt consolidation may help you. You can apply for a 0% balance transfer credit card or a debt consolidation loan at a lower interest rate.
Debt consolidation can help you replace high-interest debt with a lower-interest option, so you may be able to save thousands of dollars in interest charges and make debt payments more manageable. Compare the APRs and terms offered by multiple lenders to find the lowest rates.
While credit card debt consolidation can benefit you by reducing your interest rates, you'll typically need a credit score of 700 or higher to qualify. Another thing to note is that if you're taking out a 0% balance transfer credit card, you’ll need to pay off the entire balance within that introductory offer period. Otherwise, you’ll be hit with major interest charges.
2. Debt Settlement for Credit Card Debt
If your credit score is not high enough for a debt consolidation loan or if you have no way to pay off your entire debt, consider credit card debt settlement. A debt settlement professional can negotiate with credit card issuers on your behalf to settle your balance for less than what you owe.
This is a good solution to consider if you are on the brink of dire financial situations like bankruptcy. An experienced debt relief company can negotiate for lower interest rates, fixed payment schedules, lower fees, and penalties so you can save up to 50% of your original debt before fees.
3. Negotiating with Creditors for Credit Card Debt
If you don't have substantial credit card debt, you may be able to negotiate with creditors independently. However, this process takes discipline and a lot of work.
Here are a few tips to help you negotiate with credit card issuers successfully:
- Get a copy of your credit report to see where you stand.
- Know your outstanding balances, interest rates, fees, and charges.
- Approach multiple credit card issuers and compare their credit card offers.
- Try negotiating with your current issuer to match rates if you find a competitor offering lower rates.
- Be prepared to demonstrate your inability to clear the debt to convince your credit card company to accept your offer.
4. Bankruptcy for Credit Card Debt
If you're dealing with credit card debt that's so high that other debt-relief options won't help, you may want to consider filing for bankruptcy. This should be a last resort only when all other options have failed.
Credit card debt is unsecured debt, so it can be wiped off through bankruptcy. However, it comes at a cost. Depending on the type of bankruptcy you can file for, it can impact your ability to open other credit cards or secure loans for up to 10 years. Consult a bankruptcy attorney if you're considering this option.
Why You Should Hire a Credit Card Debt Lawyer
Getting out of credit card debt is not always easy or simple. A credit card debt lawyer can help you find the right repayment option, minimize your legal risks, and protect you from illegal collection practices.
TurboDebt can also help you achieve your financial goals through consultation, planning, and debt relief services. Our debt professionals can assist you in finding the right debt relief option based on your financial situation. Connect with us today for a free consultation.
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