Sued by Credit Card Company: Shooting for Debt Settlement

Thousands of Americans are being sued by their credit card company because of unpaid debts. In fact, almost 50% of Americans owe an excess of $10,000 in cards debts. No wonder, more and more people are looking for ways to settle the debt rather by be sued by their credit card company. If you are sued by your credit card company and you see a window of opportunity to settle the debt out of court, do so. Most creditors would rather settle out of court rather than see through the trial until the very end.

Here are a few tips that will help you settle the debt and avoid being sued by a credit card company:

Don't Make Matters Worse

As tempting as it would be to go grab your card and go on a shopping spree, don't. There's no need to cut off the card because this will have adverse effects on your credit report. However, use the card only when it is absolutely necessary. At this point, you are better off using cash when you shop rather than swipe that plastic.

Make a Debt List

When you are able to manage your expenses and were able to restrain yourself from accumulating more debt, you need to know exactly how much money you need to pay. You need to list down all your debts including the interest charge, and monthly payments. This will give you an idea which debt you need to repay first. Experts' opinion on which debt should be paid first (the one with higher interest charge or lower interest charge) but this decision is entirely up to you. Being on top of all your financial responsibilities is a must.

Call Your CC Company

Once you made your calculations, contact your creditor and instigate a debt settlement negotiation. Give them an idea how much you can afford to pay. Remember, debt settlement is almost always 50% less of the original debt amount so shoot for this figure. Of course, you need to call someone who has the authority to negotiate or make a decision to work with you. This will help you resolve the problems faster and avoid being sued by your credit card company.

Having problems with unpaid debts with the possibility of a credit card lawsuit can be quite tough especially in this economy. So don't wait until you get sued by your credit card company and take action. Prevent a lawsuit from happening by showing your willingness to repay the money you owe or at the very least, work out a payment plan in installment basis.

For more information on how you can defend yourself against all debt claims without hiring a lawyer, click here.