2007-07-22 07:01:19 · 7 answers · asked by jmanddl 1 in Business & Finance ➔ Credit
Unfortunately, I can tell you first hand what happens. Most credit card companies will proceed to SUE you, that's what happen to me.
When I was 18 yrs old, I thought it would be great to get a credit card, even though I didn't make a large income. And like most credit card companies this was fine with them, because they LOVE to create these traps, because your young and they know they have YEARS to get their money back if you don't pay. It's like an investment to them, because any money oweing accures interest, each year, and late fees every month.
That's why so many college students are targeted. They even go to the universities to hand out cards.
I was eventually sued, and am actually paying it off right now, they will enter a judgement against you for the amount owed and if you don't pay they will GARNISH your wages. They can wait for MANY MANY years to get their money.
Every 10 years which is the statue limit, they can re-file their lawsuit for another 10 years. This goes on your record. It's best to just pay them off, even if you have to make an arrangement, to pay a small amount at a time.
By chance, if they do not agree to this, and let's say your young, or you don't make a large income. You can allow them to sue you, and when you go to court, explain your situation to the judge. Tell the judge that you are trying to pay them but you don't make a substantial income and the company refuses to work with you.
Most Judges understand the schemes of these companies and will work with you, because you are making an effort. They will enter a judgement in an amount, and secure this amount from interest and late fees being tacked on every month or year.
I wish someone would have told me, because I thought if I just ignored it, it would go away. NEVER, this is how these credit card companies make most of their money. Not from people who can pay. People who can pay they might make a small percentage of money. But people who CAN'T pay they make their money, plus interest fees, late fees, court fees, etc..
That's why most people just file for bankruptcy which you NEVER want to do unless you have to------GOOD LUCK!
2007-07-22 07:23:57 · answer #1 · answered by Just Saying 2 · 0⤊ 0⤋
Depending on how much is is and if it's worth a lawyer, they can sue you, get a judgment, and send the sheriff to come and take your stuff. Not likely to be cost effective, but they have that right.
More likely is that they report the situation to the credit bureaus and sell your account to a collection agency. The collection agency acquires the right to sue you and to call you and make your life miserable. Looking like a deadbeat on the credit report will mean that you won't be able to get credit at all, or at least not at a decent rate. Credit is a financial management tool, which you will be throwing away. OK if you want to pay cash for everything for the next 7-10 years.
Then there are others who don't make loans but use the credit report to see if you are a reliable person, like landlords, insurance companies and employers.
2007-07-22 07:09:35 · answer #2 · answered by Ted 7 · 0⤊ 1⤋
Continuous interest & late fees attached = larger bill.
be on your credit report for 7 years which will affect any loan from home, auto, furniture store, etc.. plus many jobs positions look at this as an irresponsible person.
Suggestion: Contact Credit Counseling Service by website or in your local area. They deal with the credit card company which will stop the late fees & reduce the interest rates - - you pay directly to this Service & easily restore your credibility.
2007-07-22 07:12:24 · answer #3 · answered by Carole Q 6 · 0⤊ 0⤋
They can sue you and garnish your pay, it will stay on your credit report 7 years after 6 months from the first default. You could have trouble getting apartments or jobs and insurance rates will be very high. It is almost as bad as bankruptcy.
2007-07-22 07:05:42 · answer #4 · answered by shipwreck 7 · 2⤊ 0⤋
well if you do not pay off your credit card debt, the interest on the amount that you owe to the credit card companies continues to accumulate...for example, if your credit card debt is one thousand dollars and you do not pay it off expect that interest will be added each months to the amount that you have not paid back
2007-07-22 08:59:11 · answer #5 · answered by apple_kaur 3 · 0⤊ 0⤋
You get lots if interest and other charges tacked on to your bill, you mess up your credit score, and you eventually end up getting sued and having your wages garnished.
2007-07-22 07:05:13 · answer #6 · answered by Anonymous · 2⤊ 0⤋
It will make your life a whole lot more expensive. Paying higher interest rates, trying to land a job.....and the whole ten yards.
2007-07-22 07:07:48 · answer #7 · answered by sis79 2 · 0⤊ 1⤋
everything you owened will be sold in auction house
2007-07-22 07:06:04 · answer #8 · answered by jack sparrow 2 · 0⤊ 3⤋