What will happen with credit card debt?

Question

I have credit card debt and the consolidation places don't sound good to me. What would happen if I decided not to pay them anymore? What if I choose to pay off one at a time. Can my wages get garnished? Can they take me to court? Bankruptcy is not an option for me I only have about $5000. Please advise!

Answer 1

Your wages won't get garnished, but the longer you take to pay them, the worse it will be on your credit.

Answer 2

They CAN take your to court. WHEN they receive a judgment against you, they can request garnishment. If your total debt is $5000 for multiple cards, they won't bother. They WILL harass you until you have paid everything. Pay the minimum on all but one card and pile everything you can on that card. Get an extra part time job if possible, you CAN pay these of this year.

Answer 3

Before consolidating your credit card debts, it is important to carry out thorough investigation to determine its suitability for your condition. Many credit card companies and banks provide debt consolidation services to their customers. To start the process, it is important to scrutinize your debt properly. Write down the interest rates charged on various cards. If the new rate is far below average of the old one, then opt for consolidation as it will be cheaper for you. After you get all the information, contact a professional, to assist you with the consolidation, and get the best offer.

Answer 4

Bad credit debt consolidation loans are quite popular with those with poor credit history. If your loan application is rejected by a lender, bad credit debt consolidation loans are there to help. If you want to repair your credit history by repaying a loan, which has simple terms and low monthly installments, again bad credit debt consolidation loans are for you. They save you after rejection and help you regain your financial credibility, so that you can again enter the mainstream credit market.

Bad credit debt consolidation loans are of two types:

1. Secured bad credit debt consolidation loans:

These types of bad credit debt consolidation loans are secured by a collateral usually some property or a guarantor. Since, the lenders find something to bank upon in case you default on payments, the interest rates on secured bad credit debt consolidation loans are cheaper, the lending amounts are higher and the repayment period can be long.

2. Unsecured bad credit debt consolidation loans:
Read more about it at: http://www.credit-card-gallery.com/article/198,Get_over_bad_credit_problems_with_bad_credit_debt_consolidation_loans

Answer 5

Ok im in the same boat. Here are your options.
1 Yes they can garnish if they wish but i havent had this happen yet
2Yes they can take you to court and again has not happened
3You can pay them off one at a time but the others will continue to pile up. And if you decid not to pay at all then they will continue to harass you for their money unless you change your number and address. So all in all you need to pay doesnt matter how long it takes or how much you pay on them . They are simply glad to get any amount from you as long as they get something.

Answer 6

I'm sorry about your Mother. IF she passes away, anything in her estate such as savings and checking accounts must first be applied to her bills. Such accounts are subject to various state laws. For example in some states, the money instantly becomes the property of the survivor on the account. Check with the financial institution involved. IF her estate does not have the resources to pay those bills, her family is generally not liable for the bills unless they received money or property from the estate. The company that she owes the debt to can claim they should have been paid first. I am NOT an attorney, I cannot advise you on the priority of who gets paid first, second, etc. Her sons and family members are down the list unless that son has a written loan agreement. Insurance policies should have a beneficiary named or the funds will go to her estate and be applied to her bills. The same is true for her 401K or other retirement plans. IF these have a named beneficary, then it may be possible they may not be applied to her bills. The house is an open question depending on how it is titled. Any mortgages and house taxes must be resolved before the house title is changed. Many mortgages have a clause that if the title changes, the mortgage must be paid off at once, unless the mortgage company approves otherwise. If it has a WROS deed already on file, then, it may escape her estate. Make sure somebody files with the court as executor of record, Learn the procedures and follow them. One credit card company collection attorney tried to claim himself as the executor (personal representative in some states) so that he could collect for the credit card company despite the fact there was nothing for them to get. She has to be lucid (in her right frame of mind) before anything can be moved from her ownership to somebody else. Any action that you do now, may trigger an exemption called "in antipation of death". Consult an attorney before moving any of her assets out of her name or control. That said ... IF she is still "sound of mind", make sure she has a will and it reflects her wishes. Who should handle her estate? Who gets what? If she dies without a will, it will be a royal mess due to the intestate laws which vary by state. Her long lost brother and family could show up and be entitled to some of what is left for the relatives to split. Disclaimer: I am NOT an attorney in any jurisdiction. Laws on this subject vary by state. Conult an attorney or have her do so. Do NOT name the attorney as executor due to the high cost of attorney fees.

Answer 7

Credit card debt can ruin your credit history, preventing you to get a mortgage, car loan, personnel loan, other credit cards, etc., etc. ..It will even prevent you from getting approved on a rental application. If you don't pay your credit card debt, it will be reported to all the credit bureaus as you being a bad risk for credit in the future. A bankruptcy will do the same thing. I hope this helps you.

Answer 8

I think you should immideately try to go to some debt consolidator for help. Some are bad but not every one is bad and they will try to do it in a better way as it is their business after all. The other option is you pay off the whole money yourself.
To know more you can visit
http://debtconsolidationmanagement.blogspot.com
and
http://geteasyloans.blogspot.com

Answer 9

Take a part time job delivering pizzas or something and pay off the smallest card. Then next,next,next. It's just that easy. You can make an extra 5k in just a few months pizzaing or pushing around boxes at UPS. Then cut those damn cards up, and be proud you learned the lesson for 5K instead of 30K.

Answer 10

They can definitely take you to court...garnish your wages...and DESTROY your credit. I'm a bill collector, so I'm pretty familiar with this type of thing. I also am struggling with my $5000 credit card debt. First and foremost...STOP USING THE CARDS!!! Cut them up...seriously. And just put your nose to the grindstone and pay 'em off. Try to transfer them on to one card if you can. Good luck!