- In this video, I'm going to share with you what happens if you don't pay your credit card debt. - Yeah, I'll just put it on my credit card. I'm never going to pay it back anyway. ♪ 'Cause I have $30,000 in credit card debt. ♪ ♪ When they call I tell them I can't pay it back yet. ♪ - ♪ Credit card debt. ♪ - ♪ Tomorrow I may buy myself a dining room set. ♪ Or this Boba Fet.
- ♪ Credit card debt, credit card debt, credit card debt. ♪ - The average American household has over $5,700 in credit card debt. So what happens if you find yourself in a position where you can't pay that debt back? Well, initially you're going to start becoming really popular. You're going to get a lot of collection phone calls from the credit card company itself, and they may even farm it out to different collection agencies. If that goes on for six months, where you can't make some kind of a payment arrangement or if you can't actually bring current the card, at six months of no payments, the credit card company's required to charge off the account at that point.
Now this is one of the biggest misunderstandings when it comes to credit card debt that I have, period, from clients, is that often people believe once a debt is charged off, that the credit card company can no longer try to collect on it. That's 100% not true. I don't care what the comments say in the various YouTube videos I have. If it has been charged off, they can continue to still try and collect on it, and often what they'll do at that point is they'll package it up with a bunch of other delinquent accounts and they will sell those delinquent accounts to junk debt buyers. The big junk debt buyers nationwide are like Portfolio Recovery Associates, Unifund, Midland Funding, they're the big filers that we see nationwide. Once the debt buyer has it, they will often do just some minimal collections, maybe a couple phone calls, a letter, and then they usually file a lawsuit.
Their whole business model is to file suit against you, get a judgment against you, and then garnish your wages or levy your bank accounts and make life miserable. So if you can't pay your credit cards, there are different options, though. The first, like I said, is you can reach out to them and try to put together some type of payment arrangement. Often, credit card companies are very willing to allow you to put in some kind of a payment together, especially if it's just for a short period of time. If you have a large amount of credit card debt and you don't have the ability to get it repaid, that's when a lot of people will come to my office and look at a Chapter Seven bankruptcy. Chapter Seven bankruptcy is perfect for getting rid of credit card debt. It eliminates it completely, there's no payback, it's completely discharged through that legal process. If you want to learn more about bankruptcy, debt settlement, and some other ways to get rid of credit card debt, you can check out some of the other videos here on my YouTube channel, make sure you subscribe so that you get the latest information I have on tips and strategies for dealing with your debt problems.
Thanks for watching today..
As found on YouTube