what will happen after i cannot make any minimum payment for my credit cards? will they harass me?
Trong N asked:
how can i get rid of credit card debt? does it work if i call some consolidate debt company that help people in deep debt like me? please help
Tanya
how can i get rid of credit card debt? does it work if i call some consolidate debt company that help people in deep debt like me? please help
Tanya
Tags: Credit Card Debt, Credit Cards, Credit Debt
July 12th, 2009 at 4:04 pm
Justin
yep.*
July 14th, 2009 at 4:41 am
Gerald
I would say it depends pretty much of how good is your credit history. If you cannot make the minimum payment on your credit card, your credit history has more to suffer than the harassment you will get from the credit card companies. Credit cards are famous for their high interest rates. When I can’t cover the payments from my bank account, I alwasy pay the entire balance owing using a line of credit. The interest on line of credit is 4% vs the interest on the credit card of 18%.
Secondly, you need to be aware of your credit score. There are ways you can get your credit score. In Canada is free once a year through Equifax. Get rid of all the credit cards you don’t use. Even if you don’t use them, they still show on your credit report.
Not only, you need to be aware on what you are spending the most. Before buying something ask yourself if it’s a necessity, do you really need it.
Consolidating your debt helps, but in short-term. You have to see why you cannot cover your debt.
Talking to a financial advisor would help.
July 14th, 2009 at 11:11 am
Lauren
Yes they will harass you. First, they will call you repeatedly. If you still don’t pay, they will send your account to a collection agency, and they collection agency will repeatedly call you and send you nasty grams in the mail.
Depending on the balance, the credit card company may take legal action and hire a lawyer. In that case and if the balance is high enough, they lawyer will get a court order and put a levy on your bank account, freezing your assets. If that happens, you will have to hire a lawyer of your own, and try to get the case thrown out of court and the levy lifted. If you can’t prove that you are not at fault, you will be forced to pay your account, or else a deputy sheriff will show up at your bank and have all your money taken out and given to a rep of the bank.
Of course if you say you can’t make a minimum payment, you probably don’t have money in the bank, so you don’t have to worry about that. But they will continue to harass you for years and years, and it will go on your credit report fast, and will destroy your credit for 7 years.
I would stay away from consolidation services, they are a scam if you ask me. I would call the credit card company and explain to them your situation. They will work with you. If you just leave it alone and not pay them, it is a lot worse. Just call them and negotiate. They will lose money either way. They would much rather negotiate something.
Btw, if the account balance is really high, like above $5000, they might take you to court without even putting a levy on your account. If they take you to court, and you can’t disprove the credit card company’s claim, the judge will force you to pay up.
July 16th, 2009 at 10:53 pm
Anthony
yes, unless you contact them and work out a plan
July 19th, 2009 at 2:35 pm
Barry
You signed the contract. Don’t you think they have a right to get their money back. Most of the debts consolidation companies make wild claims that they can’t do. Before doing business with them call better business bureau or state attorney general. Better yet pay the bill.