I'm in a bad financial situation, and I know my credit it's gonna be hurt, in fact it's bad already!
2007-12-25 11:21:29 · 3 answers · asked by Cesar G 1 in Business & Finance ➔ Credit
When you applied for your card you signed a contract. There are laws to enforce valid contracts. regardless of the law, you also have a moral obligations to return money that you borrow from someone. Credit cards are not free money. when you use them the assumption is that you are willing and able to pay the debt. If you can't, you should not use the card.
Your best solution is to call the card issuer, explain your situation, and ask to work out a payment plan with reduced interest and penalties waived. Banks prefer that to filing a suit against you and garnishing your wages. And you should do your best to preserve what credit you still have. give some thought to your future.
2007-12-25 11:39:48 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Is there a law? Umm. Kinda. Not paying back borrowed money (which is what you're doing on a credit card) is considered theft, in which case, you can either be prosecuted or sued, and you'll pretty much lose. When you lose, you will have your wages garnished untill the debt is paid off - which could pretty much be forever.
Your best bet - first stop using the card, then call the issuing bank and let 'em know your situation up front, and send them $5 a month or something. Better to give 'em that than to have a judgement against you or a criminal record.
2007-12-25 13:59:53 · answer #2 · answered by zippythejessi 7 · 1⤊ 0⤋
Your creditors could take you to court to get a garnishment on your wages. It's always better for you to work out a payment plan than let the situation deteriorate into legal action where you have no option but to do as the judge decides.
2007-12-25 11:32:56 · answer #3 · answered by Harbinger 6 · 0⤊ 0⤋