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What Happens When You Cannot Make Your Monthly Credit Card Debt Payments?
Are you worried about the future likelihood of not being able to pay your credit card debt?
Are you already behind in your monthly credit card payments? Have your interest rates and monthly minimum payments been increased? Have you suffered late payment penalty fees?
Have you thought about bankruptcy?
Your financial problems may be the result of a job loss, a catastrophic illness, a death in the family, a failed business venture, or just the simple mismanagement of finances. Whatever the cause of your credit card debt problems, you can avoid despair and worse case thinking about court action or bankruptcy with some primary education about unsecured credit card debt.
According to the Credit Card Debt Survival Guide, it is important to understand the realities of credit card debt collection. If your account is in arrears, it is one of millions of accounts in arrears. In the last 12 months, eight percent of American adults (18 million people) have been late making a credit card payment and have missed a payment entirely, according to creditcards.com. If you account is sold to a junk debt buyer, it is one of tens of thousands or hundreds of thousands sold in a package of junk debt for ten cents on the dollar or less.
The credit card companies plan for bad debt and understand a small percentage of consumers simply cannot pay for whatever reason. But to credit card debt collectors, according to the Credit Card Debt Survival Guide, there are two kinds of credit card debtors; the small number who resist debt collection efforts and the majority who do not, or do so ineptly out of ignorance.
Your safety and security are in the numbers, in the millions of charged-off accounts and in the pennies per dollar each is actually worth. If you resist debt collection attempts (after you learn how to properly do so), it is simply not profitable for a debt collector to put more time into chasing you, when they can put that time in getting the easy returns from the many other people who put up no resistance. Credit card debt collectors can make a lot of money, if they only collect from 50 percent of the delinquent accounts assigned to them.
Understanding how to use the federal Fair Debt Collection Practices Act, your state’s consumer protection laws and, if necessary, your local court’s rules of civil procedure are the first steps to frustrating credit card debt collectors.
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