What is the worst thing that can happen to you if you don't pay off a credit card? The account was already charged off and the creditor is calling my parents house when I don't pick up my cell phone.
2007-10-20 07:00:18 · 8 answers · asked by Anna Rexia 5 in Business & Finance ➔ Credit
The bill is only $350 from a Victoria Secret account I had. It's not a lot of money but I am also for paying rent, car payments, insurance, school.. ect..
2007-10-20 07:18:47 · update #1
The worst thing that can happen is they can sue you and get a judgment from the court, at that point they can garnish wages (if your State allows it), attach bank accounts and file liens on any property you may own.
All of this activity will show on your credit report for the next 7-years making it very hard to get any other types of loans without massive down payments, huge fees and State maximum interest rates.
2007-10-20 07:05:37 · answer #1 · answered by ? 7 · 5⤊ 0⤋
i guess its a credit card that you used at victoria secret, right? If so it does not matter what retail outlet you bought with the credit card.
Why are they calling your parents house, are they a co-signer on your credit card? If they are not then the collection agency is violating the FDCPA that does not allow disclosure of a debt to a third person...they can contact a third person one time trying to find you but they cannot talk about the debt...
File a complaint with the Federal Trade Commission which regulates collection agencies and they will make sure that they stop and/or fine them. Of course the collection agency call always initiate a law suit for collection of money if you dont pay...and a judgement be found against you....doubt they do that for the amount involved...
2007-10-20 15:50:40 · answer #2 · answered by Man of La Mancha 2 · 0⤊ 0⤋
They will sue you, win a judgment, then garnish your wages, attach your bank account, and lien your property. Judgments are good for 10 years and put another ding on your credit report.
The collectors will follow you to the grave trying to collect. And when you don't answer their calls, they will continue to bother your parents.
You should bit the bullet and try to work out a settlement. Depending on how old the charge off is, you might get them to settle for 50% to 75%. Of course, you'll need a lump sum payment to get the best deal. Any payment plan will have to be short term. Get the settlement agreement in writing before you pay and don't give them access to your bank account.
You did run up the credit card. Find a way to pay it off. Have a garage sale, sell blood, get a second job ...
2007-10-20 14:08:26 · answer #3 · answered by bdancer222 7 · 1⤊ 0⤋
You have the address to your creditor. Send them 10 dollars a month. They won't accept it over the phone because they will want a bigger payment, but a monthly 10 dollar payment will show that you are trying. Save what money you can, just for this reason.....They will try to do a settlement (payless then you owe) and if you have that much money do it.
Good luck and at least try. Don't forget to make them send you a note saying that you paid it and tell them to make sure they update your report.
2007-10-23 01:32:11 · answer #4 · answered by Peggy Pirate 6 · 0⤊ 0⤋
If it hasn't already, the creditor may sell the loan to a collection agency, which will likely be more aggressive. Get it fixed now before it gets worse. Avoiding the problem won't make it go away.
2007-10-20 14:06:27 · answer #5 · answered by npk 7 · 1⤊ 0⤋
One of the biggest concerns for a creditor is your credit history. If, for example, your credit history shows a recurring pattern of late and/or missed payments, or any other credit history mistakes you made in the past, there's a strong chance that you'll be denied credit. In simple terms, creditors don't like to take risks. And if they see you as too big a risk, based on a questionable credit history, credit score or overall credit rating, your request for a loan may be refused.
http://credit.privacymatters.com/credit-articles/credit-history-mistakes.aspx
also check out: http://credit.privacymatters.com/credit-articles/credit-card-charges-hidden.aspx
Good luck getting this straightened out!
2007-10-23 15:53:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋
for an average person, a $350 chargeoff won't severely affect your ability to get another loan. however collections agency might get aggressive on the balance.
2007-10-20 22:26:17 · answer #7 · answered by alex 2 · 0⤊ 0⤋
they can keep reporting it on your credit report for one. they can turn it over to a collection agency who continue to hound you or even sell the debt over and over again to various agencies.
or
they send it to their collection law firm and they sue you. your probaly young so they would take judgment and when you have assets (job,bank accounts etc) they will garnish them.
there's plenty more that can happen but i'll leave it at that. feel free to contact me if you would like to discuss further.
2007-10-20 14:06:53 · answer #8 · answered by wareagle30 2 · 0⤊ 0⤋