"Not Paying Credit Card Debt- You Can Run but you Can't Hide"
Not Paying Credit Card Debt
"Exactly what would likely happen if I quit making monthly payments on my charge cards?"
Simply by not paying credit card debt, a number of people foolishly think that their credit card debt will go away. Actually, it's not that simple. In reality the vast majority of lenders and debt collectors are not going to easily forget about a financial debt - particularly if the debt is for thousands of dollars.
Some tips about what might typically take place should you choose not to pay credit card debt. To start with, you would certainly receive calls or letters from your credit card companies kindly reminding you that you are behind.
Remember, credit card companies define a delinquency as receiving a payment 30 or more days following the deadline. In case you disregard the phone calls or the letters, the lenders will possibly increase your interest rates to a maximum of 30%!
If you're roughly a hundred and twenty days late, the credit card company is likely to sell your account to some collection firm. The credit card company will also report your delinquency to the credit agencies. Your credit history will state "collection account" for the past due account.
The collection organizations will more than likely saturate you with phone calls. Worse, they could even call up your employer, friends, or family to reveal your delinquency. Or perhaps even, if they sense that you don't know your legal rights associated with debt collection, they could attempt to manipulate you and tell a lie or deceive you in order to get you to ultimately repay.
Because your credit rating will certainly worsen, upcoming interest rates will be increased. At the same time, if you plan to get a house, the mortgage lender will probably ask for you to pay-off the account.
What's more, you may not get promoted, or hired by a future company, due to the fact that progressively more and more companies are now reviewing credit files as a tool to help them in making hiring, or promotion decisions.
Just in case everything else fails in the attempt to recover from you, they may file a lawsuit. In case you still don't pay after you have the summons to show up, the collection company may prosecute you in order to obtain a judgment.
If a ruling is achieved, the debt collector can put a lien upon your property (assuming, of course, you are a homeowner), garnish your salary, as well as ask that the courts freeze all bank accounts. The debt collector cannot take away your home.
As you can tell, not paying credit card debt might be the worst thing you can do. You can find more effective options of debt elimination accessible to you.
About the Author
Debt Free Solutions is a financial consulting company that assists Americans across the U.S. to eliminate their credit card and other unsecured debt (e.g. medical bills, collection accounts).
We utilize various programs and strategies to assist them to get rid of their debt in the quickest, most efficient method possible. We also analyze the risk factor. We structure our programs to drastically minimize the risk that is inevitable with all debt elimination programs.
We offer our clients much more than a debt settlement company does. The vast majority of debt negotiation companies simply help you settle your debts with your creditors- nothing more.
On the other hand, we provide additional services to significantly help to minimize the risks that are involved with negotiating with your creditors.
First, we offer a free, no-risk 10 day trial service. If, for any reason, you are not completely satisfied, you simply walk away. No commitments. No contracts.
Next, we provide a comprehensive credit repair service to all our clients. This is a $795 service that is absolutely free!
Also, we offer free attorney consultation (a maximum of five sessions) in case one of our clients’ creditors files a lawsuit.
Last, we provide a written guarantee that our clients’ creditors will settle for an average of 50% or more for all of the debts they attempt to negotiate.
Our services are competitively priced- and include the above services!
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