high credit card debt

November 20th, 2010 by Questions

We have a large amount of debt with a variety of credit cards and credit lines. We could use the credit on one of the cards to pay the others off. Could we then go to that credit card company to work out a debt settlement?

Posted from: Ontario


One Response to “high credit card debt”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

This wouldn’t be the proper way to go about it. You are much better to simply look into the debt settlement the way things sit. If you first consolidated everything then you will have done two things:

1. You will have given 1 institution the entire debt and as a result are completely dependent on the 1 institution to cooperate with the debt settlement.

2. You will have knowingly put 1 institution at risk and protected your other creditors from potential hardship. The result is that you have organized your finances to benefit the many and to the detriment of the 1. This is not a good idea as it is inappropriate, and potentially illegall. As well, if you want to have your creditors cooperate with the debt settlement, this isn’t really a functional way to make friends and influence people.

The result, leave things where they are and pursue the debt settlement directly.

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