What Happens If You Do Not Pay Credit Card Debt?
What happens if you do not pay credit card debt seems be a question that many people are asking during today’s economy. This question will not be answered the same depending on what you plan to do about not being able to make your credit card payments.
If you fall behind on credit card payments and become paralyzed to the point where you ignore the situation you are in, you are going to have problems. You will get collection calls from your credit card company for about six months. After that time, your credit card company may sell your account to a third party collection agency. They can be very harassing and down right nasty.
With the economy being what it is, more and more credit card companies and collection agencies are taking legal action. They will place a judgment on your credit report and in many cases will garnish you wages for the outstanding balance on your account. This is something you want to avoid at all cost. So, the sooner you face reality and begin to deal with your situation the better off you will be.
It is best to work with your lender and see what type of hardship programs they offer. Credit counseling may also be an option for you, but you will still have to make a 2 percent payment each month. Your collection calls will stop, your unsecured debt will be consolidated into one monthly payment, your fees will stop and your interest rates will be reduced significantly. But not everyone is able to make a minimum payment.
Debt settlement is growing in popularity as many people are being faced with bankruptcy. This is an alternative that can have you debt free in 12-36 months. Debt settlement is a debt help option where your credit card balances are reduced through negotiation.
By: Marjorie Salada
Tags: Bankruptcy, Collection Agencies, Credit Card Balances, Credit Card Debt, Credit Card Payments, Credit Counseling, Credit Report, Debt Help, Debt Settlement, Economy, Garnish Wages, Interest Rates, Judgment, Marjorie, Minimum Payment, Negotiation, Popularity, Six Months, Third Party, Unsecured Debt