As more and more debtors just ignore their debts, and credit card statements, because of their inability to pay, collection activity and pay garnishments are increasing dramatically, according to a: NY Times Article. As I have often written, the worst thing you can do, if you cannot afford your payments on credit cards, or anything else, is to ignore your mail. This is exactly what collectors and creditors hope for. It makes it very easy for them to get what is called a "default judgment. This is a judgment issued by a court because you simply failed to show up, or answer a complaint.
If a collector is awarded a default judgment, they can, and often do, not only add on unreasonable fees, to your unpaid balance, but also go straight after your salary. Be aware, that while state laws differ as to how much they can take, if you are not a minimum wage worker, often it is as high as 25%.
If you are like most people, chances are you cannot live after losing 25% of your gross pay.
The good news is that this horror story is totally avoidable. Their are many steps you can take to back off a creditor or collector, legally. If you are in this situation, you can start by visiting: Stop Creditor Harassment. Here you will find a step by step guide on How to answer a creditor lawsuit.
If you have many creditors and would like to explore the possibility of entering a: Debt Settlement Program in which you will be represented by legal counsel, if you get sued by a collector, while your debts are being negotiated down, please feel free to call us at: 877-766-2465 to have a no obligation Free credit counseling consultation about your options.
Excellent debt relief help is readily available.
If you are reading this and are not already a subscriber to our FREE Credit Counseling Newsletter, Please feel free to subscribe. By doing so, you will receive a FREE Budgeting spreadsheet, to help you gain control over your money. Remember, the newsletter is free.
Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
[email protected]
877-766-2465
Comments