What Is A Credit Card Judgment?

A credit card judgment is simply an order from the court requiring you to pay your credit card bill

. With a court judgment, your wages will be garnished until the debt is paid. If that isn't bad enough, this judgment will appear on your credit report so until that debt is paid and for years after, you will have an entry on your report that will prevent you from getting credit in most cases. If you can get credit, the rates and terms will be unfavorable.

Often, if you are being sued by your credit card issuer, you owe a large amount of money. They won't bother with the time or expense if the debt is small. After 180 days or more of non-payment, the issuer will either charge off your account or file suit against you. In addition, you have most likely already had a collection agency calling you trying to collect on the debt.

The best way to avoid a credit card judgment is to not find yourself in court. Call the creditor and negotiate. Know what you are able to pay and attempt to make an agreement to pay a certain lump sum. In exchange, you would like them to remove any negative entries from your credit report regarding this debt.

Whatever you work out, you will almost always avoid court if you make attempts to settle. They don't want to pay the court costs and invest in the time any more than you do.

If you do receive a summons for this debt, there are a few things that you can do to make your court experience more pleasant or disappear completely. First, pay whatever you can before court. It probably won't keep you out of court but the judge may be persuaded to continue the case giving you more time to pay the debt. While this may not seem like you won, anything you can do to avoid having a judgment against you, is good for you.

If you have a debt that is so large that a credit card company has filed suit against you, consider getting an attorney or a credit counselor. Often they have more negotiating power that may allow you to settle out of court.

Remember that the best way to stay out of court is to take care of situations like this as early as possible. Paying something will always be better than nothing at all. If you ignore it, it won't go away.

by: William Trustey

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