Credit Card Debt Negotiation
Let’s first talk about our Credit Card Debt Negotiation System. Very few people know about this strategy and yet this strategy is very powerful if executed correctly.
Credit Card Debt Negotiation … How Do We Do It?
The bottom line is we’re experienced professionals with a field tested and proven system in place. We know what to do and when to do it. Knowledge, Presentation, and Timing = Successful Settlement.
An effective system is based on knowledge, skill and experience. We’ve done this successfully time and time again. This is too important for you to learn by your own mistakes. Leaving your bad debt in the capable hands of a trained professional is the only way to achieve success. You can rest easy knowing O.W.D Law Firm is protecting your rights.
OK, let’s discuss another debt elimination alternative you might consider.
“Do I continue to pay my credit card companies while you are negotiating with them?”
Usually no, you do not make minimum payments while we negotiate on your behalf. If you are at the point where it is a hardship to continue to make minimum payments, you should not continue to make payments while we are negotiating. Any payments you can make should be put into a secure escrow account which we can establish for you. Furthermore, it is our experience that the credit card companies will not negotiate in good faith unless and until they are convinced that our client is financially distressed to some degree. Non payment of minimum payments is certainly evidence of financial distress, although there are others.
“Do I have to come up with the money all at once to settle with the credit card companies?”
We can settle with the credit companies one by one so that you don’t settle with all of them at once. For example, let’s say a client owes $15,000 (fifteen thousand) to Visa; $15,000 (fifteen thousand) to Mastercard; and $15,000 (fifteen thousand) to American Express for total credit card debt of $45,000 (forty five thousand). Using this as an example only, we may settle with Visa in January for $5,000 (five thousand) at which point the client will pay a lump sum of that amount and $10,000 (ten thousand) is forgiven.
Then a few months later, in March, we may settle with Mastercard for $5000 (five thousand) at which point you will pay Mastercard that amount and the remaining $10,000 is wiped out completely. Finally, using this fictional example, we may settle with American Express in August for $5000 (five thousand). Using this fictional example, the client saved $30,000 and paid the creditors one by one over a period of seven months. KEEP IN MIND that often we can “buy” you additional time to obtain the settlement amounts. In fact we have had clients who have needed two years to obtain settlement funds.
“How do I obtain the settlement amounts?”
Some of our clients take out a mortgage or second mortgage; some put away their money in an account every month since they are not paying the minimum payments they can now save money for a settlement; some borrow from a 401K; some borrow from relatives; some sell certain assets like cars or jewelry. It depends on your situation.
“Can I continue to use my credit cards while you are negotiating?”
Generally no, but there are exceptions. Under certain circumstances you can use certain cards which are not part of the negotiation. However, talk with O.W.D Law and we can tell you exactly how this works.
“What happens to my credit when your law firm negotiates my debt?”
When you reduce credit down to its distilled essence, credit is based on your ability to repay your debt. We have well intentioned people try to claim that despite having $50,000 in credit card debt they think they have good credit because they keep getting more offers for credit cards and auto loans. But the reality is that conventional sources of credit will penalize, either through a higher rate or limitations on credit terms, if your debt to income ratio is poor. If we settle your debt with a credit card company, the settlement is reported to the credit bureaus along with a zero balance. The fact is that when we wipe out your bad debt, your debt to income ratio becomes far superior and you’ve avoided bankruptcy. Yes, the short term affect on your credit can be negative but the long term effect on your credit can be profoundly more positive than if you had filed for bankruptcy or you continued to struggle with paying not only the principal but interest payments which geometrically increase the amount of debt you ultimately repay. Think of it this way: What does it truly cost you if you have to pay $30,000 to pay back $10,000 or, worse, $100,000 to pay back $50,000? What could you have been doing with that money that you used to pay credit card companies for mostly interest?
“How does O.W.D Law Offices get paid for debt negotiation?”
O.W.D Law Offices most commonly gets paid a contingent fee based on savings. Keep in mind that in all cases, we will put you in a net savings position. You will save money by having us negotiate debt. In the history of our law firm, we have never not saved our client money. In the vast majority of cases, our clients are saving at least 50% of what they owe the credit card companies.
“How long does it take to complete the process of negotiating?”
The more creditors you have, the longer it can take. Typically, it takes twelve months or less to settle the accounts on your behalf. However, it can take a lot less.
“Is this legal?”
Yes, absolutely. If you think about it this way, what we do is renegotiate the terms of the original contract. We’ve successfully negotiated time and time again with the largest as well as the smallest credit card companies.
“What about lawsuits and wage garnishments?”
Lawsuits rarely happen because we are able to effectively communicate with the creditors and their attorneys. Even in those highly unusual circumstances where a lawsuit is filed by a creditor, we typically settle those suits in your favor. Wage garnishments are even rarer because a creditor has to sue you first before it can go in and take your wages. The reality is, a skilled experienced negotiator who is also familiar with the law can almost always settle the matter without an incident.
“Can I do this myself?”
The brutal truth is it is highly unlikely you will achieve anywhere near the results O.W.D Law can achieve. Through years and years of experience and training we know the law; we know who to call; we know when to call; we know what to say; we know what not to say; we know when they are bluffing; we are rational and calculating; we know how to structure and document the settlement; we are a law firm. We are professionals. We know how to do a job very well for our clients. We hope we can do our job well for you some day soon.