If I Stop Paying My Credit Card Debt, What Happens?

As an Orlando bankruptcy lawyer, one of the first things I advise my clients to do when they decide they are filing bankruptcy and hire me is to stop paying on their credit cards. Recently, though, before I could offer that advice, a client asked me: “What happens when I stop paying my credit cards?”

The answer? Your credit card company will begin the collection process, which normally proceeds in this manner:

1. You will receive frequent phone calls from the original creditor, as will your family and your employer, attempting to convince you to make a payment over the phone. The collection agent will try to intimidate you, by saying they will ruin your financial life unless you pay up.

2. Once the initial creditor believes they cannot convince you to make a payment, usually after 90 or so days, they will sell your account to a third party collection agency. This collection agency will then proceed with the actions listed above.

3. Then, around 180 days from the time you stop making payments, you may hear from an attorney. This attorney will simply try to collect on the debt, following the same protocol in 1 and 2 above.

4. At this point, the attorney might file a lawsuit, seeking a judgment against you. A judgment would permit the creditor to collect from you through a wage garnishment. Your wages cannot be garnished without a judgment.

Seems like a long, drawn out process doesn’t it? By my calculation, more than six months from the time payments have stopped until a judgment is entered against you. Now the question is, “Why?” Why would I advise my clients when they hire me as their bankruptcy lawyer, to stop making credit card payments?

Because the idea is for my client to be filing bankruptcy sometime well before the judgment is entered. Garnishment is taken out of the equation. This way, my client uses the payments they would have made to an abusive debt collector, for a credit card debt, to catch up on a car payment or a house payment they want to keep through filing bankruptcy, or to start building that safety net their Orlando bankruptcy lawyer advocates creating as part of your fresh start strategy when filing bankruptcy.

But what about those malicious debt collection agents? Here in Florida, we have some of the toughest laws in the country to protect consumers from the abuses collectors use regularly when attempting to get my clients to pay their credit card debts. Additionally, a Federal Law also restricts those abusive acts by third party collection agents in an attempt to collect on a debt. Why not sue your creditors to enforce your rights?

Collection agents and the whole debt collection process can be an intimidating one. Don’t let it be! As long as you know your rights and how the system works, the empty threats thrown at you on a call from a debt collector will seem as foolish and absurd as they really are; and in most cases actionable in court.

Get the Free eCourse to find out how an experienced bankruptcy lawyer to assist you in successfully navigating the debt collection process and help you achieve that fresh start you’ve been craving.

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Big Credit Failure – What To Do About It?

In 2008, the taxpayers of America saved big banks and stock pundits for a total of one trillion dollars. These folks were thought that they are too big to fail and many people fear the impending doom of the US economy if they are not saved.

Unfortunately, Congress did not impose any safeguards and consumer protection to control the activities of the bank or at least stipulate in what manner are they going to get and keep receiving the money. Things do not look good for the average consumers as they are forced to pay the price of the bailout by paying more money to credit card companies in the form of interest rate, fees and penalties.

Many debtors are thinking of ways on how to get out of credit card debt by hook or by crook. For the average Joe, it would mean paying all balances and cut the cards in two.

Settling credit card debt for those with too much debt is not easy – they have to go to credit repair agencies to get rid of the debt as promptly as possible. For those who have exhausted all possible means, the only way left is to default on the debt and file for bankruptcy.

By getting rid of credit card debt using the bankruptcy method you will still need to pay some of the debt off, but a lot less. This will ruin your credit for a while but eventually you will be able to build it back up. Bankruptcy costs are usually around $500 to $2000, depending on the attorney and how complicated your case is and whether or not you own any real property such as a house or condo.

Want to find out more about quick ways to make money, then visit Ken Smith’s site on how to choose the best ways to invest money for your needs. This article, Big Credit Failure – What To Do About It? is available for free reprint.

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Credit Card Debt Statistics: Information That You Should Not Ignore

I just read some data about credit debt today that quickly blew my mind. There have been 3 things that stuck out hugely to me. First was that the average credit debt in America is $15,788. The second one could be that the average person in the America has 3.5 credit cards. The 3rd and most shocking point was that the average rate of interest was 14.99%. Whoa!

There are actually a lot of reasons for all of this. The very first major reason is that currently unemployment numbers are still very high. The less people work, the more of the chance that they are going to be piling up the credit card debt. This is also true because there has been a reduction in the number of hours for those individuals who are employed. So they are only taking home less money. While they may be taking home less money they most likely are still spending exactly the same that they were when they were making more. Where’s the outlet? Credit card.

I think that the number of credit cards the typical consumer has together with the amount of personal credit card debt that they have got on these cards can be contributed to just how effortless it really is for people to acquire credit cards. Banks spend lots of money on marketing the lifestyle that you can live whenever you purchase items with their credit cards. They make it look extravagant to spend money. So there have been a pretty picture painted with how spending on credit cards can be.

So, once the pretty picture of personal credit card debt is painted. Chances are they’ll mail bomb anyone with their credit pulled recently. The banks have been permitted to get credit information and that can target those who probably have either recently applied for a loan or another credit card. They then mail out credit card offers to those individuals with predicatively a higher response rate because they already are in the game. (This data anyway is the same reason you receive a couple of calls and mailers once you apply for a house loan. It’s called Trigger data, since it is triggered when you get your credit pulled.)

So while a person might have all kinds of money on one credit card. They will get an even better offer on a new credit card. This can be contributed to the average number of cards being almost 4. They come in the mail and signing up take very little effort. Personally I signed up for a Citi card the other day and was shocked at how fast I was approved. The more shocking part was how fast I got the card. That card showed up in less than 5 days.

The biggest issue with personal credit card debt in the US though is ours, “keep with the Jones’s” lifestyle. It has been engraved into the fabric of our society that we have to have as nice of things as our neighbors. So you see this at all times. We certainly have a culture that is based throughout the collection of material possession. This mindset plays straight into the advertising of the creditors. The credit card firms make it easy to spend the money.

The final outcome to tap into this is scary. The entire U.S. personal debt is $2.45 trillion, since March 2010. Americans have an overabundance debt than any country in the world. It’s no surprise that more and more people are searching for credit card debt relief like Indiana debt relief or Virginia debt relief. People get in over their heads and realize they may need Debt Settlement to help them get Debt Relief and let them know how to eliminate credit card debt. Therefore, control your urges to spend and steer clear of being like the average American with almost $16,000 credit card debt.

Learn more about Indiana debt relief. Stop by Amanda Stuart’s site where you can find out all about the ways on how to eliminate credit card debt online.

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A Number Of Hints On Getting Christian Debt Consolidation Loans

At various times in our lives it is quite possible that we will begin to develop some significant debts. Often these can be fairly difficult to pay off for whatever reason and therefore it might be a good idea to consider the option of debt consolidation. There are many different companies you could choose from and one of the types of companies you might consider would be Christian debt consolidation programs. If you do want to choose one of these you need to consider a few things first.

Of course, it will first be very important for you to do your research. Not only do you want to make sure that the company you choose has a good reputation, but you also want to make sure they are suitable for your specific situation. Start looking at reviews on the Internet in order to find some suitable companies.

Also take advantage of discussion boards and forums as well. These are excellent at helping people to get specific feedback on various different programs. Finding out what people think of them, particularly those people who have already used them, will certainly help to light your way. By doing this you can find some reputable programs and this will help to ease your choice.

When you have discovered a few programs that seem to be suitable it is simply case of applying to them, either online, or over the phone. At the end of the day you might not be accepted on all of the programs, but conducting a few different applications will give you a better chance of finding some suitable.

If you are accepted then you can start chatting with the various councilors at the different companies and decided upon a suitable repayment plan. Due to the fact that every situation is very different you will need to find a suitable plan that fits your needs. The councilors should be there to help you find the best possible route to follow.

It is simply a case of following the repairman plan that you set up and making sure that you do not default on any payments that are required. The whole point of these loans is to help you to lower your interest obligations, pay off your debt quickly, and also help you to understand and manage your money better in the future.

Of course, it is crucial that you also avoid different scams. People commonly used religion in order to get people to sign up with these different loans and programmes and therefore you need to always be vigilant.

Receive the details and information you will need to take control of your financial future through Christian debt consolidation today! When you work with the experienced professionals of a Christian debt service, you will be relieved of the burden of debt quickly.

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How To Find The Best Debt Settlement Company

Debt relief programs have a very simple theory: pay small and spend big. With debt settlement, you may get a 50% or more reduction on your total loan amount. This method is completely legal and for those who have an unsecured debt of ten thousand dollars or higher, you might wipe out a portion of it without ever requiring you to repay it. You could get better deals if you utilize a professional debt relief or settlement company.

The very first thing to carry out is look for a reliable and trusted debt settlement company. You can utilize the internet for your needs. Today, there hundreds of websites offering debt settlement information and you will get some good strategies from them. Some websites even give critiques and side by side comparisons on the best debt relief companies.

When investigating, choose companies who do not require any upfront costs. They should really only receive money once you are enrolled in a debt settlement program. Any kind of company requesting money upfront should be avoided at all costs.

Once you locate a company you’re interested in, conduct a search on their history and reliability. This may be done through online and offline techniques. You can also ask family and friends for suggestions. Find a couple of debt settlement services and perform an assessment regarding their skills and services.

When evaluating each business, consider their price structures. A reliable company needs to be able to give you 50% reduction of your overall unsecured debts. By being allowed to decrease your debt by half right away, you will be able to pay the remaining amount faster.

Obtaining a trusted debt settlement provider is the key to your debt relief. The procedure can be very difficult and frustrating. Which is why I suggest employing a debt relief professional, as they will do all the required paperwork and negotiations with your lender. Nearly all companies offer a free consultation to begin.

For more info, check out: negotiate credit card settlement

Related: credit card debt settlement

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