FIA Card Services and Discover Bank are suing South Carolina residents left and right on charged off credit card debt. Two law firms are very active representing both companies against South Carolina residents: Dillon Law Firm and Smith Debnam Saintsing and Myers.
Both firms present as if they represent the original creditors. It is unclear whether they do or whether they are debt buyers. However, whatever the case may be, it is essential to defend these cases and to attempt settling the cases prior to judgment.
Typically, both law firms seek 50% of the balance claimed to be owed and won't consider settling for less than that. This is a bad settlement and defendants should utilize aggressive litigation tactics in order to pressure plaintiffs to settle for more advantageous sums.
The fact is, if a credit card account has been turned over to a law firm and a suit filed, the debtor has waited too long before trying to deal with the debt. Traywick Law Offices can typically negotiate credit card accounts pre-charge off or pre-suit down to 33% of the debt claimed to be owed - and sometimes less.
Consequently, you should not wait for a lawsuit hoping that the creditor will go away or fail to protect its legal rights - such as by waiting too long (and missing the statute of limitations) to sue on the debt. If the account gets to a law firm, it will cost the debtor significantly more to resolve the dispute than if the debtor deals with the account prior to a suit being filed.
The best scenario for the debtor is to contact Traywick Law Offices prior to stopping payments. We see clients with tends of thousands of dollars of credit card debt that are positively drowning because of it. They struggle to keep up on payments because they want to do the right thing, but become frustrated because they don't see themselves making any progress on paying down the balances. Strategic default may be an option for dealing with excessive credit card debt, even if the defaulting party (debtor) owns assets she wishes to preserve.
Illustration: suppose you had 5 credit cards with an average balance of 8 thousand dollars on each. Suppose also that the average interest rate on each card is 15% (a generous rate for a credit card). The debtor in this scenario has 40,000 dollars in debt at 15% interest per year. To determine, roughly, how much this debtor pays in interest each month, first determine the amount of total interest paid over the course of an entire year: ($40k * .15) = 6000 dollars interest per year. Next, divide the total yearly interest by the number of yearly intsallments (12 installments, one each month), and that number equals the monthly interest due = $6000 yearly interest / 12 installments = 500 dollars interest / month. In the illustration then, the debtor pays 500 dollars each month in interest alone each month. 500 dollars is a huge amount of money to pay each month for interest on credit card debt. If one assumes a debtor must earn 650 dollars in gross income in order to pay 500 after tax dollars in interest, one can quickly conclude that 40,000 dollars in credit card debt is totally unsustainable for any middle class person. Unless you have a six figure income, 40,000 dollars in credit card debt is far beyond your means ever to repay, even if you are able to keep your head above water for a period of time, the moment you encounter any unexpected disruption, such as illness, temporary loss of income, loss of a job, or an unavoidable expense that takes precedence over credit card debt, such as doctors visits, a vehicle repair, maintenance on real property, or whatever, a middle class earner is better off not paying the debt at all. The credit hit already hurts this particular debtor anyway, since 40,000 dollars of unsecured debt at a high interest rate renders a middle income earner uncreditworthy. Folks might as well face facts: in the above scenario, any money paid in an attempt to satisfy the debt is wasted money. The numbers speak for themselves, in the illustration, the middle class earner simply will not be able to repay the amount owed. In this illustration, the debtor would be far better off defaulting on the debt and working with Traywick Law Offices on a plan that resolves the debts over a 12-24 month period. At least that way the debtor gets out of debt slavery and doesn't throw money away on exhorbitant interest payments.
People in over their heads that have stopped paying on a credit card or other installment account/contract shouldcontact a
credit negotiation attorney at Traywick Law Offices right away. You might be surprised at the deal your original creditor might offer you.