There are many negative consequences to owing a significant amount of debt. From creditors trying to garnish wages to debt collectors calling at all hours of the night, it can be stressful and overwhelming for a Louisiana consumer. This may lead some to look for relief from credit card debt through various options, such as settlement.

The process of credit card settlement involves working with the credit card company to reduce the overall amount a person owes. The company has the right to refuse an offer or make a counter offer to the consumer. While settling for a lower amount may seem like a smart step, there is no guarantee the company will agree to this. One of the potential drawbacks of settlement is that companies will likely expect full payment immediately or shortly after agreeing on an amount.

Getting rid of credit card debt can be a positive step for a Louisiana consumer who will likely never get ahead on his or her balances without some type of help. However, there can be some drawbacks to this process as well. It can leave a mark on a person’s credit, and there may be tax consequences to settling the balance.

Settlement may make sense for some, but there are situations when bankruptcy may be a more practical way to deal with credit card debt. Bankruptcy can allow a person to deal with credit card balances, medical debt and more. Before agreements to a settlement offer or filing for bankruptcy, an assessment of a person’s case can reveal the most effective way forward.