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Consumers may be able to settle overwhelming debt in Texas

Many people find themselves with financial difficulties for one reason or another. One of the most common sources of overwhelming debt for consumers stems from amounts owed on credit cards. However, there are various options for consumers in Texas and other states to settle their debts owed to credit card companies.

People often start worrying about settling credit card debts when they have had their debts sent to collections. Many times a phone call or letter from a collection agency will prompt a consumer to find out his or her options on settling a debt. One of the first things that a consumer should do is to send a request for a validation letter to the collection agency. This will force the collection agency or creditor to send the consumer proof that the alleged debt owed is indeed owed by the consumer.

Also, it is important to make sure the debts owed have not already passed the statute of limitations, which is the legally set period of time available to a creditor to pursue a breach of contract lawsuit for debts owed by a consumer. This time starts at the last time the account had been active. Therefore, it is important to not agree to anything with a collector over the phone until receiving the Validation Letter as well as confirming the Statutes of limitations has not passed. This will help to avoid unintentionally reactivating the debt's statute of limitations.

On the other hand, if the debt has been confirmed as valid and the statutes of limitations has not passed, a consumer may still be able to negotiate a settlement with the credit card company in Texas or in any other state. However, if a settlement cannot be reached, the consumer will still have to deal with the overwhelming debt. One alternative option would be to file a Chapter 7 bankruptcy, which has the power to potentially discharge all unsecured debts, including credit card debts.

Source: The Huffington Post, How to Settle Your Credit Card Debt (in 6 Steps), Tiffany Aliche, Jan. 15, 2014

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