Write Off Credit Card Debt - Is it possible?
You could be forgiven for thinking that the only way to write off credit card debt is to spend months, or rather years, slowly working away to make more than the minimum monthly payments each month.
However, in this current economic climate, many people in the UK are genuinely struggling to make even their minimum monthly interest payments, let alone decrease the original debt itself. Consequently, the number of UK citizens filling for bankruptcy is increasing, so understandably, consumers are eager to find a genuine way to write off credit card debt once and for all.
It is understandable that in order to survive in the modern world you need access to credit. The issue is not having access to credit; the issue is having access to large amounts of credit – and when the uncontrollable urge arises to spend it, it is easy to see how quickly people’s personal debt spirals out of control. For a great many people this way of living has now become unmanageable, and there is a genuine desire to write off credit card debt and live a debt free life
People think there is no alternative but to try to pay off their credit card and loan debt, but all they end up doing is spending years making the minimum monthly payments, which means the actual capital debt – the amount of money they actually borrowed – never or barely decreases. It is a vicious circle. And in this current global financial crisis, people in debt are no longer able to meet their minimum monthly payments and are unable to avoid bankruptcy. This is because they are not aware there may be a way to write off credit card debt.
So, when you are no longer able to keep up the minimum payments on your credit cards and loans, what do you do?
Firstly, if you have a mortgage you are advised to keep making your monthly payments; however, if you are having difficulty making your mortgage payments, don’t bury your head in the sand - talk to your mortgage lender about your financial situation, and ask if you can take a payment holiday, or negotiate to spread the arrears over a number of months. You will be amazed how accommodating many of the mortgage lenders are being at this time.
Your credit cards and loans are another matter: it is possible to negotiate reduced payments with the lenders; some lenders are excepting a single settlement payment of up to 50%, sometimes more, of the debt, just so the debt is cleared. If you do not have the available funds to do this, request a financial statement from your lender, and declare your monthly financial incomings and out goings; this will prove the realistic payment you can actually afford to make each month. You may be surprised how flexible your lender may be. While you will not be able to write off credit card debt in full this way, at least you will be dealing constructively with the problem.
However uncomfortable this experience of having to face the reality of your current financial situation with regard to uncontrollable debt may be, and however much you might like to ignore the situation, you need to take control of the situation. The question many people ask themselves is there any other way to write off credit card debt?
Yes, there is. Consumers are now beginning to hear how they can legitimately write off credit card debt without actually having to pay the loan back.
It is possible to write off credit card debt, should the credit agreement that you signed when you took out the loan not comply with the Consumer Credit Act of 1974. If this is proven to be the case, then the agreement could be rendered ‘unenforceable’, meaning the lender cannot enforce the debt – in other words, your outstanding balance of credit card debt can be cleared.
Some consumers mistakenly think this is merely taking advantage of a legal ‘loophole’, however this is simply not the case. The credit agreement is a legally binding contract between the consumer and the credit card or loan provider and must be adhered to by both parties. Should it be legally proven there are breaches of the prescribed terms within the credit agreement, then the consumer may not have to pay the outstanding balance of the credit card or loan. This is not a legal ‘loophole’ – this is a legal right, and one that could result in a genuine way to write off credit card debt for the consumer.
In addition, you may also be entitled to compensation if you have incurred ‘unfair’ charges by your lender for late payments, or exceeding your credit limit on your credit card. You may also be eligible for compensation if you had been mis-sold Payment Protection Insurance when you took out your credit card or loan. So, not only may it be possible write off credit card debt due to the potential unenforceability of the your credit agreements, but also receive additional compensation for unfair charges as well.
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Debt Clear Solutions is a Financial Claims Company authorised and regulated by the Ministry of Justice. in respect of regulated claims management activities, (Authorisation Number: CRM15623).
Our goal is to find the best Debt Clear Solution for our clients: write off credit card debt and claim what is rightfully yours.
To speak directly with one of their dedicated Claims Specialists, call Debt Clear Solutions today on 020 7544 1093
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