Posted on
November 23, 2009
at
5:17 am
failure to pay credit card debt, what are the penalties or consequences?
Posted on
November 23, 2009
at
5:25 am
failure to pay credit card debt --Would not result in you going to jail. The worst that could happen is you getting sued for a judgment - which is any of the ff:-wage garnishment-bank levy-property lienBut that doesn't happen instantly. It goes through a process and you are to be given time to respond. Being handed down a judgment is a court process -
Posted on
November 23, 2009
at
5:39 am
failure to pay credit card debt --Hey there, so okay, your original creditors will try to collect on your debt for 5-6 months and then the debt would be assigned to a third party collection agency. The collection agency can sue you for failure to respond on time or if failure to agree on the payment.But know your rights here, there have been a number of complaints against collection agencies, so don't get victimized:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
Posted on
November 23, 2009
at
5:40 am
Thank you for the reply, another question, what if I can't pay? I really can't as of the moment...
Posted on
November 23, 2009
at
5:44 am
Well, it depends on your debt amount - when you say you can't, did you mean 'you don't think you can afford the monthly payment'? How much is it that you owe anyway?If it is over $10,000 - your monthly payment would be $150/mo. not $800/mo. as debt settlement is about reducing your balance to more or less half. Hiring the services of a debt settlement company would cost you 15% of the total debt amount spread over 18 months or a percentage of the settlement amount (20-25%)
Posted on
November 23, 2009
at
5:48 am
You would be liable for that debt if it's really yours. You have to pay somehow. If you've lost our job, apply for unemployment benefits and if you get approved, use it to enroll in a settlement or debt management plan. What you can do in the mean time is to stall - have that debt verified.Once the collection agency contacts you by phone, expect a letter to follow within 5 days, after that call. That letter should contain your debt amount, creditor information, and what you can do if you want that debt verified. Check for your state's statute of limitations as well.
http://www.fair-debt-collection.com/SOL-by-State.html
Posted on
November 23, 2009
at
11:53 pm
Failure to pay credit card debt will results in charged-off accounts. Collection activities will still continue and your account may also be referred to a junk debt buyer, or a collection attorney.
Posted on
January 18, 2010
at
10:17 am
I am in the same situation. I have been contacted by a letter from a professional debt collection agency. I lost my job and am a full time nursing student at the moment living off of student loans. There is no way for me to pay anything or affording a debt consultant until I graduate in the spring. What should I do or tell them??
Posted on
January 25, 2010
at
6:13 am
Do not admit to that debt or promise to pay for it - without the collection agency validating that debt.Within 5 days of their first contact with you - they're supposed to also send you letter containing the amount that you owe, your creditor information, and what you can do if you wish to have that debt validated.If they haven't sent you anything, you can write them instead.
