credit card debt.?

Question

hi. if i don't make CC payments then what happens next?
i have 10 CC and not pay for 4 of it.
rest of 6 keep make payments on time.
keep checking , savings account open and pay my rent and all other payments on time..
the reason is i'm trying to ignore large amount of debt bills and save that payments for next 3~4 years for settle it at half if possible..
they can collect money from my bank account if i don't send payment? or they can take my car away?

Answer 1

To boost your credit score:
The first thing you will need to do is call the three major credit reporting agencies and request a free copy of your credit report.

www.equifax.com
www.experian.com
www.transunion.com

Then once you get those in the mail (7-10 days) there will be a dispute form attached to the reports. Fill those out for every negative account on your report regardless. Fax, mail go online whatever it takes to get those submitted as quickly as possible. Then those companies must answer your dispute within 30 days or it is removed from your credit report completely. So that will eliminate some things, hopefully.

Then make sure you pay all your revolving accounts to below 50% of your credit limits.

Make sure that you make all your payments no more than 20 days from the date it is due.


Good Luck!

Answer 2

Most likely those credit card companies will call you and try to get a payment. After a while they will turn it over to collections. They might sell your account to a collection agency. Keep in mind that over the next few years that you are talking about the interest is going to accrue at probably 20 - 30%. Your settlement offer might not be for less than you owe now because of the interest. Some banks will file in court, especially if you own a house. I had one bank file and put a lien on my house. The others that I got behind on just kept calling and sending stuff. I've settled most of the accounts I was behind on. They settled for anywhere from 50 - 85%, depending on the company.

Answer 3

They cannot take your car away, as the debt you owe them is unsecured. However, in some states, they can eventually sue you and get a judgment. This can possibly allow them to garnish your wages, if allowable in your state.

We have been using a method that many financial advisors recommend, something often referred to as the "debt snowball."

The basic steps in the debt snowball method are as follows:
1. List all debts in ascending order from smallest balance to largest. This is the method's most distinctive feature, in that the order is determined by amount owed, not the rate of interest charged. However, if two debts are very close in amount owed, then the debt with the higher interest rate would be moved above in the list.
2. Commit to pay the minimum payment on every debt.
3. Determine how much extra can be applied towards the smallest debt.
4. Pay the minimum payment plus the extra amount towards that smallest debt until it is paid off.
5. Then, add the old minimum payment from the first debt to the extra amount, and apply the new sum to the second smallest debt.
6. Repeat until all debts are paid in full.

Do this and hopefully you can keep all of your creditors current. This will help your credit, not destroy it like not paying will.

While paying them off, cut up the cards and promise yourself you'll never have credit debt again. It'll be a great move on your part and it will help establish future financial security.

Answer 4

First of all, credit card companies cannot take your car away or go after your checking account. They will just continue to send you statements and keep trying to contact you in order to recover the debt.

Now, I dont suggest ignoring them. That is a lot worse. I would suggest sending them even 20 a month. At least you are sending them something.

Since you have that many cards, I would suggest contacting a consumer credit counseling agency. I have used them and they really work. they will contact all the credit card companies. and they will work out deals for you where you make one monthly payment to the agency that you can afford. This way you are paying on all of the accts at once.

I hope what I said helps you in some way.

Answer 5

If you allow those 4 cards to charge off, your credit scores will tank for the next 7 years, unless they get a judgment on you then it may hurt your credit worse and possibly for a longer period.

When you default on those 4 cards, the other creditors that you are paying may get nervous and might rate jack you, decrease your credit limit or just close the accounts.

The creditors you default on, or the collection agencies they turn the accounts over to, may decide to sue fairly fast, take their time before suing or never sue.

They cannot take the funds from your bank accounts, garnish your wages if your state allows it or place liens on your property unless they sue, and win, first.

You should really try to do as much as possible to keep from defaulting on those cards.
Try to get a low interest loan to pay them off, find a 0% card to balance transfer to or speak to the creditors and see if they will work with you.

Answer 6

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:

Persons who do not have anything to offer as the collateral or security, can take unsecured bad credit debt consolidation loans. The lenders find themselves at increasing level of risk while giving such loans. The existing bad credit situation and lack of a collateral, make them charge high interest rates and offer low loan amounts to offset the risk involved. But, a person who has a bad credit and cannot provide a collateral has little choice, but to take these high interest loans. At least by repaying these the borrower can rebuild his credit history. Read more from: http://www.credit-card-gallery.com/credit_card_debt_consolidation.html

Answer 7

If you are caught in the credit card debt trap, approach a debt consolidation company for help, instead of paying high rate of interest to your card issuer. Most of the debt consolidation companies provide loans to help you tide over the credit card debts. These loans are known as credit card debt consolidation loan. The advantage of this loan is that you are charged a low rate of interest. The difference between the interest charged on the credit card and the interest on the credit card debt consolidation loan is substantial, saving you quite a big sum of money.

Answer 8

Dont let them go my sisters boyfriend just got served with a summons for letting his credit cards go.My advise is to maybe seek help through a consumer counseling co or even just pay them a little every month (or as much as you can) once you go into default your credit wiil be shot.