Credit card debt can lead to judgments and garnished wages and here’s how the process works: Once a the credit card company determines that they cannot collect the credit card debt, the account goes into default status. At that point, the company usually refers the delinquent debt to a third party debt collection company for collection. When that happens, the debtor starts receiving debt collection calls. If they ignore those calls, they start receiving dunning collection letters. If they ignore those letters, depending on the amount of the credit card debt, many collection agencies will move to take more drastic actions. Which means they are more likely than not going to sue the debtor to collect the payment.
When you receive any notice threatening legal action, you MUST act immediately! If not, you could diminish your ability, power and rights to stop the inevitable. When your debt escalates to a potential lawsuit you want to seek debt advice A.S.A.P.! I’m repeating this because it bears repetition. All too often, debtors bury their heads in the sand praying, hoping, thinking and believing this matter will go away. It won’t! They want their money! The smart consumer will reach out for help before he or she digs himself or herself into a financial sinkhole. Virtually all wage garnishments and judgments and can often be avoided if the problem is addressed early on.
What should you do? You have a number of options. You can seek debt counseling from a reputable agency. You can hire an attorney. You can enroll in a debt reduction or debt management program. You can learn how to perform your own debt settlement. And as a last resort, you may have the option of filing bankruptcy.
Here’s how to defend yourself against a debt collection lawsuit.
Here’s how to perform your own debt settlement.
