I'm scared. I'm 21 and I'm in debt about $4,000.
Now, I have a Credit Card with HSBC and I'm really overdue because job situation but now I have been able to pay like $20 a month (the min. payment is $ 135) for this month.
I just got a letter from them saying if I don't pay this, it will go to collections and they will pursue this case to get the collection of this account.
I'm scared, I don't want to go to jail for a credit card. What are the laws and stuff and what can they do to me? It's not like I'm NOT paying at all, I'm giving what I can. Please help me.
2007-02-13 09:29:52 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
Well at least you got to purchase a bunch of stuff you couldn't afford.
2007-02-13 09:41:58 · answer #1 · answered by Wurm™ 6 · 0⤊ 0⤋
don't worry abou this.
you will not go to jail for debt.
We did away with debtor prisons centuries ago.
One thing you have to do is contact HSBC, or a consumer credit counseling agency, to make arrangement for repayment. The interest is eating you alive, and you will never pay off the debt.
Right now, HSBC is assuming you are a flake with no intentions of paying off the debt. If you contact them and let them know about your situation, or work through a consumer agency, HSBC will waive late fees, and penalties, bring the interest down to 3 or maybe in 0%, and work out a payment plan. Part of the condition is that you cannot use the credit card, nor should you open any new credit accounts.
2007-02-13 09:37:15 · answer #2 · answered by Jack Chedeville 6 · 0⤊ 1⤋
You will not go to jail. Since the amount of the debt is so high though they will most likely take you to court and get a judgment from the courts. They will garnish your paycheck and get into any bank accounts you may have.They don't care that you are paying $20 a month they want the money that is due. The only way out is to pay the $135 due.
2007-02-13 09:46:15 · answer #3 · answered by ♥ Mary ♥ 4 · 0⤊ 0⤋
You won't go to jail for this. However, they could sue you in civil court for the money. If they do this they could get an order to garnish your wages.
The collection agencies will tend to play hardball with you but they can not threaten you with actions they can not take. If they ever do threaten you with jail you have action you can take to sue them for harrasement.
I would get hold of a credit counsling agency, as they can help you work with the credit card companies and get yourself back on track.
2007-02-13 09:35:58 · answer #4 · answered by OC1999 7 · 0⤊ 0⤋
Call Consumer Credit Counseling. They will work with your debitors and it doesn't have the same effect as filing bankruptcy. I used them to get out of debt and get my credit back on track and it was successfull. It will make your creditors stop calling. However, you will no be able to open new accounts with them for a while and it freezes any accounts you place into your repayment program.
http://www.cccsstl.org/
http://www.nfcc.org/
http://www.consumercredit.com/
2007-02-13 09:39:55 · answer #5 · answered by tchrnmommy 4 · 0⤊ 0⤋
first off you will not go to jail....but your credit will be damaged even if you pay them $1 a month your at least trying to pay them something look in your agreement and see if you have protection if you lose your job most credit cards have this type of protection good luck :)
2007-02-13 09:42:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I Wouldnt No.
2016-05-24 06:40:55 · answer #7 · answered by Anonymous · 0⤊ 0⤋