Not paying your credit card debt is the worst decision you can make. Find out your options to assist you in reducing or eliminating your credit card debt fast.
By not paying credit card debt,
some people mistakenly believe that their debt will go away. Well, it's not that easy. You see the vast majority of creditors and debt collectors won't simply forget about a debt- especially if the debt is for thousands of dollars.
Here's what would typically occur if you decide not to pay credit card debt. First, you would receive calls or letters from your creditors kindly reminding you that you are delinquent.
Keep in mind that creditors define a delinquency as receiving a payment 30 or more days after the due date. If you ignore the calls or the letters, the creditors may your interest rates to a maximum of 30%.
If you are about 120 days late, the credit card company will most likely sell your account to a collection agency. The creditor will also report your delinquency to the credit bureaus. Your credit report will state "collection account" for the delinquent account.
The collection agencies will probably bombard you with phone calls. Worse, they may even call your employer, friends, or relatives to disclose your delinquency. Or, if they feel that you don't know your rights pertaining to debt collection, they may try to take advantage of you and lie or cheat you in order to get you to pay.
Since your credit will worsen, future interest rates will be higher. Also, if you plan to purchase a home, the lender will most likely require you to pay-off the account.
In addition, you may not get promoted, or hired by a future employer, since more and more companies are now looking at credit reports as a tool to assist them in making hiring, or promotion decisions.
If all else fails in the attempt to collect from you, they may file a lawsuit. If you still don't pay after you receive the summons to appear, the collection agency may sue you in order to obtain a judgment.
If a judgment is obtained, the debt collector may place a lien on your home (if, of course, you are a homeowner), garnish your wages, and request that the courts freeze any and all bank accounts.
As you can see, not paying credit card debt may be the worst thing you can do. There are much better solutions of debt elimination available to you.
