Sarah O asked:
I have a $20,000 credit card debt. I got many phone calls from creditors and I didn’t answer them. I’ve got letters from attorneys saying that I will have to pay them off or I will have to go to court for the debt. I heard from people that it has happen to them before, but they never really had to go to court. They ignored the situation and the amount will charge off eventually. Is it true? If it charge off, how will it effect my credit report? I don’t own a house or a car.
http://1mortgagecalculator.info
I have a $20,000 credit card debt. I got many phone calls from creditors and I didn’t answer them. I’ve got letters from attorneys saying that I will have to pay them off or I will have to go to court for the debt. I heard from people that it has happen to them before, but they never really had to go to court. They ignored the situation and the amount will charge off eventually. Is it true? If it charge off, how will it effect my credit report? I don’t own a house or a car.
http://1mortgagecalculator.info
When they charge it off, it means they have exhausted all efforts to get you to repay your debt. It does not mean that you do not still owe the money and it will remain on your credit report. Since you don’t own a house, don’t plan on buying one. You can’t.
If you don’t deal with this situation, you will ruin your credit. You need to contact your creditors and discuss with them how you can pay off your debt.
You are why the rest of us have to pay high interest rates. Your credit is already have a bad rating. You can try to settle for 50 cents on the dollar or less, but you need the money to pay. If you make the min. payment, you will never pay it off.
Bad credit can effect your job opportunities.
That will have already screwed your credit to a basement wall for awhile. The laws in the U.S. have changed in the past couple of years in favor of the credit lenders, I am sorry to say. They still can’t throw you in jail for it, but you could be old and gray before it is ever charged off. Your best bet is to try to get some help negotiating this debt down, or refinancing it into straight interest from the credit card revolving debt. You will need a dedicated financial company to help with that or a really good relationship with a small-town banker.
The court can garnish your wages until the bill is paid off. Your credit is already ruined, it’s time to be a responsible adult and face the music. Talking and negotiating is so much better than ignoring.
For 20k you very well might go to court. The prelegal papers are drawn up from info that bill collectors get that go to their legal depts. If you ever have a job for more than one year and have a bank account anywhere at any time or own a car ever you may have a problem. They can even many years down the road in most states either freeze your bank accounts, put a lien on any property or garnish your wage. The biggest problem is by that time the amount with interest and penalties may be much higher than 20k. It might be 40 or even 60k and will force you to pay for bankruptcy which will remain on your credit history for 10 years more and be used against your credit for 7. If you cant pay file for bankruptcy as soon as possible and make your life easier.
Debt Settlement, also called debt negotiation is an arrangement between a debtor and a creditor to repay a debt generally for a for a lowered payoff amount. When a debtor is not able to pay the debt any more for any reasons, debt settlement is the only option that remains.
Generally, only unsecured debts, like those accrued with credit cards , can be negotiated for settlement. This is because of the fact that there is no security attached with unsecured debts. Hence, the lender can’t repossess anything. On the other hand secured debts, like home loans, mortgages, car loans etc. have a collateral attached to them and can be repossessed by the lender if a default on debt occurs. So, there is no debt settlement or negotiation with secured debts. Read more about it at: