For example if you made the charges but quit making payments???
2006-09-30 20:39:49 · 6 answers · asked by jazzle151 2 in Business & Finance ➔ Credit
If your card charges off - basically the credit card company declares the debt uncollectable - it will go to a collections agency. You will get warning in writing that the debt is going to charge off and when.
If you do let it charge off, you're going to have to negotiate with the collections agency about making payments or settling the debt. They will be a lot tougher with you then the credit card company. They will make threats of taking you to court, say they can only give you a certain amount of time to come up with the money, etc. But basically, if you can come up with a reasonable payment plan that you can handle, they will negotiate with you.
If you do not make arrangements to pay off the debt, you stand the chance of being sued. Your wages can then be garnished. (In some states, like Texas, you cannot be sued for credit card debt, but most states allow it.)
By the way, if you let your credit card charge off, your credit rating is going to go in the toilet. Better to deal with the credit card company itself before this happens! They will work with you to set up a payment plan you can handle.
Talk to your creditors and work with them.
2006-10-01 14:06:35 · answer #1 · answered by milomax 6 · 0⤊ 1⤋
Yes, I spent 1200 hours investigating debt management solutions and services for my book, "How Credit REALLY Works".
On your credit late payments will stack up, dropping your credit scores with each new late payment. Creditors will be helpful for about two to three months, then the calls will get threatening. They may call you at work, call your relatives or call your neighbors. They will call constantly and even late at night.They will harrass you.
They will make "settlement offers in the 4th months, but most will demand lump sums as payment for the settlement--but your debt amount will rise about 20% in those months. It will be 25% higher in the 6th month.
Around the 6th month of not having paid, they will "charge-off" the account and that will make your credit even worse.
Some companies will send you to collections, making your credit even worse. The calls and threats will continue. Some credit card companies are highly likely to sue you. If you are employed someowhere, wage garnishment will take 25% of your gross pay.
How is it sounding so far?
Go to www.LearnAboutCredit.com and get my Ebook or just pay what you owe and avoid the above.
2006-10-04 19:35:58 · answer #2 · answered by supercreditguru 3 · 0⤊ 0⤋
They are able to send your account for collections, then they will get a judgement to have your wage garnished. You will lose 1/3 of your pay until the dept is paid. You will have a hard time getting any more credit from any other company.
2006-09-30 20:46:55 · answer #3 · answered by mrhappy546 2 · 0⤊ 0⤋
Man you mess up yoiur credit report big time! Not only will it go on your report but if it is turned over to a credit agency they will harrass you & your family until yo make payment arrangements , not to mention all the interest they will have tacked on.
2006-10-01 22:28:43 · answer #4 · answered by kamsmom 5 · 0⤊ 0⤋
It would hurt your credit score big time. oh and they will send you like 10 notices before they actually go after you in court but before all that they will want to settle for pennies on the dollar depending on the amount. The worse that could happen if its a small amount is it will damage your credit for 7 years if its a big amount they will go after your assets.
2006-09-30 20:44:25 · answer #5 · answered by MAKAVELI 2 · 0⤊ 0⤋
You can ruin your FICO score and the credit card company can sue for you their total amount of money you owe in CIVIL COURT.
And they can obtain a court judgement against you, whereby they can garnish a portion of your wages.
Just thought you should know what kind of games you could be playing. . .
2006-09-30 21:50:44 · answer #6 · answered by DaMan 5 · 0⤊ 0⤋