The bank is asking us to pay the dept before end of this month. What do we have to do? We dont have the money to pay for it, and we also receive a demad letter.
2007-10-23 17:16:23 · 6 answers · asked by drewgailey 1 in Business & Finance ➔ Credit
If it's just a credit card, I wouldn't worry about wage garnishment because as a bank they CANNOT. However, what they CAN do is sue you and if you try to sell anything you physically own in the next 10 years (like a car or house), that bank is entitled to the profit of the sale to settle the debt. Wage garnishment will only happen if you owe your state money or if you owe the federal government money (from an unpaid federal or state loan or back taxes). If you can't afford to pay ANYTHING, ignore the calls, throw away the mail, and in 8-10 years, you'll be OK. I'm not suggesting that you do so, but it's an option. You can also contact a company such as Take Charge America (debt consolidation) - they'll figure out a good payment plan, get the interest on the card dropped or significantly lowered, and have you set and you won't have to deal with the credit card company ever again.
2007-10-23 19:29:47 · answer #1 · answered by josh6293 2 · 0⤊ 0⤋
bdancer2 tells it all, except no one asked how much you owe. The card will eventually "charge off", and show as a bad debt on your credit report. If they are demanding payment in full, you already have a problem with your credit report.
They will take legal action only if the amount is large (in the thousands, usually). A few hundred is not worth the effort.
Work out payments, payments that you can stick to. All lenders prefer some money to no money. Then, do not get behind again.
If you can not make payments of any kind, I am sorry for you. Try the garage sale / second job ideas. If you are truly at your limits (as, you can not make any payments), and the balance is small, forget about it and expect credit to be a lot harder to get in the future.
OR, if you are in trouble with one lender, are you also in trouble with others? If so, it is now time to find a good credit counseling service. DO NOT go to the ones who advertise on TV. Ask your local Better Business Bureau who to go to. Some of the Credit Counseling services will actually get you in worse trouble!
As for the laws, you took money from another person who expects to get it back. You have both a legal and moral obligation to repay it, even if it is difficult. Don't play if you can't pay.
2007-10-23 18:29:53 · answer #2 · answered by zealot144 5 · 0⤊ 0⤋
Sounds like you stopped making your payments on that credit card and are now in default. Are they demanding full payment? They can do that since you broke the contract.
Since you are more than 30 days past due, it's already on your credit report and late payment always makes a big dent in your score.
Depending on what your balance is, the bank may sue you. Or they may assign or sell the debt to a collection agency who will call and try to collect or maybe sue you.
If you go to court, they will win a judgment. Then they will attach your bank account, garnish your wages, and lien your property. All of which puts another negative on your credit report.
For now, you will probably get phone calls and letters demanding immediate payment. If you don't have the money now, figure out some way to get the money -- have a garage sale, collect alum cans, get a second job. You would be better off working out payment arrangements with the bank now. Later on collection agencies will be less likely to take smaller payments over long term.
2007-10-23 18:10:56 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
You don't have to do anything. There are no debtors prisions.
The worst the bank could do is get a legal judgement against you. Then some months later the bank could try to garnish your wages(take some money out of your paycheck every check).
But, Banks do not usually do this. They have to spend money on lawyers and courts.
Bank will most likely report bad credit to credit breau. Bank has probably already done this, so the heck with them.
---You can get Free Legal help. Just search for it in your area---
I know it is hard to ignore. You can answer them and tell them why you cannot pay and when and if you will pay them. If they give you a hard time, hang up the phone or leave their office. There are no prisons for debtors.
2007-10-23 18:08:28 · answer #4 · answered by Sidney 1 · 1⤊ 0⤋
From what I understand (in the United States), they can send you that letter stating that you have 30 days to pay. If, after 30 days, if you have made no attempts to pay the debt, it will be listed on your credit report as a negative item, and will affect your ability to obtain credit in the future. Your credit account will be most likely shut down at this point. They will continue to send you letters and telephone calls until the debt is resolved.
Have you tried calling them and working out a payment plan?
2007-10-23 17:20:26 · answer #5 · answered by rita_alabama 6 · 0⤊ 1⤋
You can ignore them or make payment. If you own property, they can put a lien on it to get payment. I suggest you call to make payment arrangements.
2007-10-23 17:33:07 · answer #6 · answered by C C 3 · 0⤊ 1⤋