What will happen if I stop paying my credit card?

by michael
(toms river nj usa)

i took some cash out of my cc and cant pay it back what can happen if i stop paying cc

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Apr 29, 2011
What will happen if I stop paying my credit card?
by: Debtcollectionanswers.com

If you stop paying your credit card, late fees and interest charges will build, increasing the total amount that you owe, and the fact that you have defaulted on your debt will show up in your credit files and damage your credit score. Negative information in your credit files will affect your ability to get additional credit and may also make it difficult for you to obtain adequate insurance, a place to rent, and even a job.

Once your account is about 60 days past due (although this time frame can vary from creditor to creditor), you will begin receiving demanding letters and or phone calls from the credit card company. If you continue to ignore them, the credit card company will charge off your debt eventually and probably sell the debt to a debt buyer, who will begin contacting you about paying what you owe. If you don't, you'll probably be threatened with a lawsuit, and if you are sued and the lawsuit results in a judgment against you, that information will also end up in your credit files further damaging your credit score. Plus, unless you pay the amount of the judgment, the debt buyer will take steps to enforce it -- collect the money it was awarded by the court -- by trying to garnish your wages, taking money from your bank account, or putting a lien on one or more of the assets you own.

Given all of these negative consequences, there are far better options if you are having difficulty paying your credit card debt than not paying it at all. Those options include: Getting a second job and using the extra income to pay the debt; contacting a nonprofit credit counseling agency in your area for help working something out with the credit card company; contacting the creditor to see if it would be willing to let you settle your debt (pay it off for less than the total amount that you owe on it); working with a reputable debt settlement firm to get its help settling your debt; or meeting with a consumer bankruptcy attorney to discuss whether filing for bankruptcy is a good option for you given your financial situation.

Click here if you would like to speak with a debt specialist with Consumer Recovery Network a reputable settlement firm. The specialist will explain how settlement works and help you figure out if it is a good option for you. If you would like to explore the option of bankruptcy, click here for a free consultation with a bankruptcy attorney.

You have options for dealing with your debt, but simply ignoring the debt by not paying it is not something you should do.

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