What Are Some Credit Card Default Consequences?

Many people, especially in recent years, have become concerned with what may occur with non payment of credit card debt. What are the credit card default consequences? This is an examination of just what may happen to you in such a credit card non payment scenario.

You can expect to experience a barrage of letters and phone calls trying to get you to pay up. You may be hearing from collection agents employed by the creditor. Once 90 days have passed, your account is in default status. This is the time when your account will be referred to an outside collection agency. Collection agencies can be ruthless in calling day and night, calling friends and family, and general threats. One good thing though, they may offer you a settlement for a fraction of the amount owed.

They will continue to attempt to collect the debt, and at a point in time, will decide if they will take you to court or not. They are within their rights to do so, but they may not decide to pursue it either. There are no guarantees. Their decision is based on many factors. If you owe a huge chunk of cash, they will be more likely to go after it. Another very real threat is wage garnishment. If you have a good steady job, this may increase the chance of you going to court. They will also look at how you are taking care of your other debts and bills. If they determine they are the only ones that are not getting paid by you, the agencies feel that they could just as well get paid too, and sue. The problem is that you just never know when they may sue. It may be tomorrow; it may be years from now.

Can you imagine though, if you lose a court case and the collection agency wins the right to garnish your wages? Suddenly you may find yourself with no or very little money coming in to live on. Your employer will be sending money to the creditor instead of paying you. And this will not end anytime soon, especially if you owe quite a large sum of money. You will most likely fall behind on all your other bills and debts, making life very unpleasant indeed.  The debt settlement offer from a collection agency or your creditor is suddenly starting to look very good. You probably could settle with payments that are much more manageable than a garnishment. Credit card default consequences can be very severe, and not to be taken lightly!