What happens if I can’t pay my credit card debt? | HMA

Beyond the stress of knowing your money, the consequences of unpaid credit card debts varies depending on the situation and the credit card issuer. I am Scott Shaefer, a trustee with Hoyes Michalos and Associates. Some of the possible outcomes are you will be charged late payment fee, you'll be charged interest. You could have the details reported on your credit report of the late payment. The longer it remains outstanding, the more significant hit it will be on your credit report and the worse your score can become, your interest rates could increased. But here are some of the more extreme outcomes you will have debt collectors calling you, the count could be written off on your credit report, which really significantly reduces your score. There could be court action. You could have your wages garnished or your bank account seized. But keep in mind that these these circumstances are usually done over time. Time makes a difference. So the longer things are, the worse it will be.

Late payments can be reported on your credit report for up to six years. If you don't need new credit, you might be able to wait it out. But the debt does not go away, and you may not be able to tolerate the low credit score. So if you're looking at dealing with your debts, there's four different solutions. You could try to work a payment plan with a credit card provider, ask them to reduce interest rates, asking for a reduction in their late fees to make it more manageable for you. But if the debts old that may not be viable for you. Might one of them try to do a debt settlement, a settlement of that credit card where you try to work out a deal on it, but make sure if you're working a deal, you get that deal in writing first.

Then if there late payments on these credit cards and you've got other debts you're having trouble with. You might want to try one of the legal solutions, one of the government solutions, which is a consumer proposal or a bankruptcy. A consumer proposal is where you can legally settle your debts together in one monthly payment. If you want to learn more visit us at Hoyes dot com..

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