- Read More About:
- Building Defect Solicitors Nsw
By Sean A. Kelly
Many people think that simply by not paying credit card debt, their debt will go away. The reality isn’t that simple. Most of the lenders are not going to easily forget about a financial debt – particularly since in most cases, the debt is for thousands of dollars. While generally the cost of taking legal action against the borrower is much higher than the quantity that the borrower owes the lender, the creditors and personal debt collectors of unsecured personal debt do possess a right to pursue legal action to gather an unpaid credit card debt. If you have been a defaulter, it is possible that your creditor may file a lawsuit against you and you may receive credit card summons. In case you still don’t pay after you have received the credit card summons to show up, the collection company may prosecute you in order to obtain a judgment.
So does it make sense for you to stop making payments on your credit cards? It’s feasible, but rather unlikely if you have a lot of unsecured personal debt. Even if your creditor decides to sue you, it doesn’t necessarily mean that you have to make your payments. Also, even when the debt collector is awarded a judgment in court, if you have little or no belongings, how can the debt collector collect? For this reason, most debt collectors would choose to settle, instead of sue. Also, your debt collectors may generally pursue legal action only when they believe that you hold a considerable amount of assets. Even then, in most cases, a summons to appear in court is normally a scare tactic in order to get the debtor to pay the past due debt. You may still be able to negotiate a settlement or a repayment schedule with the creditor before the court date.
My friend Allen recently had a harrowing experience with one of his credit card companies. Allen hadn’t exactly been frugal or particularly discerning while using his credit cards. As he admitted later, he didn’t use to give as much as a second thought to swiping his credit cards on almost everything that he bought. Credit cards seemed to give him a false sense of financial power and actually seemed to lead him to be more indiscriminate with his spending. His unbridled credit card usage had actually put him on the brink of bankruptcy. Bankruptcy and credit cards did seem to have a correlation in Allen’s case.
It so happened that one of his colleagues at work suggested that he consider getting professional credit card assistance. The idea of negotiating with his creditors through a debt assistance company seemed quite appealing to Allen. The company dealt with providing debt assistance to customers like him and provided both debt consolidation as well as settlement services. With their help, Allen was able to settle his credit card debt and was narrowly able to avoid bankruptcy.
He had some serious credit card debt issues to settle. It was not just that he had not been regular on payments; he had also missed a few payments and his credit card debt was spiraling out of control. The company also provided a debt negotiator to him who was responsible for contacting his creditors and for negotiating a debt reduction or settlement with them. Allen just had to deposit a fixed amount of money every month in a special account with the company and this amount was used to pay off the various debt settlements arranged by the company’s negotiator. The company kept the remaining amount in the account after paying off his creditors as fees for the debt settlement process.
Allen is now on his way to getting debt free and is happy that he took professional assistance and was able to avoid bankruptcy. There is still a long way to go for him to repair his credit, but Allen is confident that he will slowly but surely be successful in this objective.
About the Author:
credit card summonsbankruptcy and credit cardscredit card assistance
Source:
isnare.com
Permanent Link:
isnare.com/?aid=717624&ca=Finances