subject: Can You Be Allowed Not to Pay Credit Card Debt During a Financial Crisis? [print this page] Are you a credit card holder? Are you aware that you still need to pay off your debt no matter how difficult your financial situation is? Even if the amount of your outstanding balance is small, you are still responsible for it. If you don't fulfill the requirements, you can be subject to collection action and legal action. In United States, due to the global economy crisis in 2008, many Americans have been knee deep in debt. Many of them are unable to make payment for their credit cards. If you are one of the victims, you are reminded to look into this matter seriously. Although it is an unsecured debt, the creditors have the authority to take action to collect the amount of money that you owe on the card from you. At the same time, they can also collect additional fees, such as late charges and finance charges from you since you have dragged your payment for a certain period. The creditors will not allow this matter to stop here. They will contact you through letters as well as phone calls to chase you for payment from time to time. In some circumstances, the original creditors will appoint debt collection agencies to execute the job. It is indeed stressful to deal with the "professional" debt collectors. The banks or the card issuers have the right to cancel your cards too. This will definitely cause negative impact on your credit history. The creditors will indicate this matter on your credit report and this negative item will be shown in your report for 7 years if there is no action being taken to fix it. Bear in mind that your creditors will not stop taking action on you even you are experiencing job loss, reduction in your income, serious sickness and so on. When you ignore the attempts of the collection agencies to collect your debt, the creditors can seek legal action. They can file small claims suit against you in a local court. Do you prepare to pay additional court cost? To sum up, don't underestimate your credit card debt. Put in hard effort to eliminate it no matter how tight your budget is.
Can You Be Allowed Not to Pay Credit Card Debt During a Financial Crisis?
