subject: Failure to Pay Off Credit Card Debt - What Will Happen? [print this page] Author: Jeslyn Jessy Author: Jeslyn Jessy
Creating credit card debt is 10 times easier than paying off the outstanding balance. You just need a few seconds to swipe your card but you may need a few years to pay off your total debt. Although failure to pay the debt cannot land a cardholder in prison, there are a number of financial consequences a person has to face. Let's take a closer look on the negative effects. In United States, whenever the cardholders make their payment late or totally fail to pay the minimum amount of their monthly outstanding, there is definitely a damage to their credit rating. If you have late payment, you will be charged a late fee and you need to bear the finance charge based on the interest rate. If your past due is more than 30 days, this information will be shown on your credit report. This negative item will only be removed after you pay your debt in full. If you settle your debt with a lesser amount, this information will still appear on your report for the duration of 7 years. As you keep ignoring your credit card debt continuously, be prepared to receive non stop debt collection calls. The banks or the card providers usually send reminder letters from time to time to remind you. At the same time, they will take action to prevent you from using your card. In normal circumstances, once your debt is 6 months old, your creditors will sell off your accounts to the debt collection agencies. If this is the case, you need to face the harassing calls from the agencies all day long. On the other hand, the creditors may choose to bring you to legal proceedings too. In other words, they can file a lawsuit to demand payment from you. If your creditors choose to sue you, you will be required to go to the court. If you fail to solve the situation and lose the case, you will be sued for bankruptcy. Sometimes, you may be awarded a judgment where your wages will be garnished to pay off your debt. Last but not the least, ignoring the debt will increase your financial burden and failure to eliminate credit card debt will lead you to difficult situation in the future. It will be extremely hard for you to get new credit or new loan. Hence, you are reminded to manage your unsecured debt carefully so that your credit score will not be spoilt.About the Author:
Everybody just hate getting landed with huge credit card debts in such an early age. If you feel that the credit card debt is so overwhelming and it affects your work performance, visit CreditCardDebtSolver.com for more constructive tips about eliminating yourcredit card debt.
