Credit card debt can sneak up on you and cripple you financially. But remember, you are under contract and avoidance of payment will only delay and worsen the financial outcome. In the event, you should decide not to repay your credit card debt, you can expect to hear from the company. Sure, after sending a few monthly statements and numerous threatening collection letters, there may be silence. This is when you are truly in trouble.

The silence is a transfer of the debt to a collector who will track you down and seek retribution for the outstanding debt owed. You can continue to ignore such efforts and depending on the amount owed the collector may go silent or begin to speak about legal actions.

Should the collector just disappear and it seems as if the debt never existed it is safe to assume the debt was charged off. This doesn’t mean you don’t owe them, it just means the amount is not worth investing in the process of collecting it from you. Your credit report will reflect this charge off and obtaining credit in the future will be difficult until you resolve the issue.

A legal motion to appear in court may be delivered certified mail to you as means of having the court order you to repay the money borrowed. At this point, garnishing your wages may become real and liens upon your current assets possible.

Work out an arrangement with the company you owe. Not paying will have severe consequences to which you may regret for many years to come.

Tags: credit-card

Label: Credit Card Debt