3 Things You Must Know About Credit Card Default and Late Payments
It's a Civil Matter Not a Criminal One
The credit card companies really do want to work with you. The facts are that the credit card company will recover much more "bad debt" working with the customer rather than transferring your account to a debt collection agency or law firm. Although you may feel the constant calls and messages at all hours of the day are a nuisance, they are aggressively pursuing contact with you to work out a payment plan that is acceptable for both parties.
It is important to understand that if you ignore a credit card company long enough and you have a considerable balance due, they will seek legal action and file a judgment against you. Once a judgment is filed, it can stay on your credit report for 10 years and permit the credit card company to contact your employer for wage garnishment. Although you can not be fired for a wage garnishment, it can be very embarrassing.
In summary, here are the three things you must know about credit card defaults and late payments.
1. It is a civil matter and not criminal
2. Credit Card companies will exhaust all possibilities working with you before engaging a collection agency
3. They will sue you if necessary which can lead to wage garnishment
If you find yourself overwhelmed with debt repayment, consumer debt settlement is a great alternative to bankruptcy or ignoring the debt. Consumer debt settlement is when you negotiate with your creditor an amount less than you owe. It will negatively affect your credit score but much less of an impact than bankruptcy.
Published by Mitch Biggs
Diverse background with a passion for the small business community. Currently developing retail opportunities in the Health Care Industry View profile
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1 Comments
Post a CommentThis article was obviously written by someone with no relevant experience. As one who just recently went through a loss of income I can tell you they do not want to "work with you." All they do is call every 2 - 3 days and try anything to get you to send them whatever income you may get instead of paying another creditor or for necessities like your electric bill.
The employees who do the collecting are not empowered to "work with you."