Cant Pay Credit Card Debt? You Do Have Options
Credit card debts are unsecured debts where no collateral is required upon their incurrence. Just swipe the card, forget about the debt for a few days and then pay the amount on the due date. But if you are like many individuals reeling under the hardships of the recession, you probably can’t pay credit card debt on time, not even the minimum amount billed.
So, you let the credit card collection letters from the issuer pile up and the credit card debt to accrue on late charges. You probably even believed that if you ignore these things for a sufficient period of time, these problems will just go away.
Don’t Pay, Suffer the Consequences
Well, you must let go of such delusions lest you find yourself in deeper trouble. Your credit card debt may be unsecured, yes, but that does not mean that the creditors have no other recourse but to write it off. On the contrary, the law is on the side of your creditors for most of the time and, thus, you have to pay it or else face legal action.
Before the legal actions, you will be made to suffer through many aggravations so much so that the fact that you can’t pay credit card debt will be one of the biggest mistakes of your life. It will start with persistent collection calls and letters from the issuing bank, which will then be followed by the cancellation of the credit card.
The issuing bank will then give the debt to a collection agency, which will deploy persistent collection agents to your house. You might as well say goodbye to peace of mind especially when the legal actions – creditor lawsuit, for one thing – commence. Once judgment in favor of the creditor is rendered, your wages can be garnished, your real properties places on liens, and your bank accounts are levied.
That’s not all there is to the can’t-pay-credit-card-debt scenario. You will also suffer through a bad credit score that will affect your ability to find a good job, buy things and mortgage a house. Bankruptcy may even be in your near future.
Do Something, Enjoy the Benefits
The good news is that you have many opportunities to take control of your situation. It is never too late to manage debt, which can be done in two ways – DIY or hire the professionals. We suggest doing the professional route if you have little knowledge of how the system works or you have little time to monitor the paperwork.
The DIY method works in this way: You contact the issuing bank’s officers, tell them of the financial hardship you are experiencing, and negotiate new terms on the credit card contract. Said terms can include lower interest rates, waiver of late penalties and longer repayment terms for lower monthly amortizations. You will be surprised how banks are willing to work with their clients for full debt collection instead of taking costly legal action.
The professional route is relatively straightforward. You hire a debt settlement or debt consolidation company, discuss with the counselors about your plans, goals and objectives in the payment of the debt, and then let them handle the negotiations, paperwork and monitoring activities.
No matter which route taken to address your can’t pay credit card debt problem, the important thing is you are being proactive.