Wednesday 3 September 2008
Simple Steps to Avoid Getting Sued Over Credit Card Debt
By missing a payment or being late to pay once or twice, credit card debt can suddenly pile up dramatically. This can lead to minimum monthly payments in the hundreds of dollars. When you can't pay, the creditors that you owe may begin to threaten you, claiming that they will sue you for the money you owe.
There are a minimum of three possible actions that an individual can take in order to prevent being sued by a credit card company. They can file for bankruptcy, take advantage of the help offered by a credit counseling service, or limit the amount of money they spend each month to produce extra money that can be used to pay off their debts.
Bankruptcy: The Right Choice for You?
Bankruptcy is a viable option if your debt has become so uncontrollable that you have no hope of paying it back. A bankruptcy lawyer can explain the details of the process to you and help you decide if it is the right choice for you based off of your circumstances. Filing for bankruptcy can give you some time to rearrange your debts and set up a good plan for paying off your debts. And it will definitely stop creditors from barraging you with threatening phone calls.
Since bankruptcy will cause severe damage to your credit score for many years after you file, you should not make this decision lightly. It is imperative that you speak with a lawyer who specializes in bankruptcy law and determine if this is your only choice.
Credit Counseling: The Best Choice?
If you don't want to file for bankruptcy, you can also avail yourself of the help that credit counseling services offer in order to stop credit card companies from suing you because of debt that you owe. These services try to negotiate a payment plan with your creditors after analyzing your financial situation. When an agreement is made between you, the credit counseling service, and your creditors, you will only have to pay one monthly payment to the credit counseling service. They will then distribute your payment to the creditors.
Although using a credit counseling service can cause your credit report to show that you have made late payments, any negative repercussions that doing so does to your credit will not be nearly as serious as they would be if you had filed for bankruptcy.
Is secured debt consolidation a good way to get your debt paid off? Learn more about what it is and whether it's a good choice or not at the Debt Smackdown website. Visit http://www.debtsmackdown.com for more helpful tips & advice.
Article Source: http://EzineArticles.com/?expert=W._M._Blake
There are a minimum of three possible actions that an individual can take in order to prevent being sued by a credit card company. They can file for bankruptcy, take advantage of the help offered by a credit counseling service, or limit the amount of money they spend each month to produce extra money that can be used to pay off their debts.
Bankruptcy: The Right Choice for You?
Bankruptcy is a viable option if your debt has become so uncontrollable that you have no hope of paying it back. A bankruptcy lawyer can explain the details of the process to you and help you decide if it is the right choice for you based off of your circumstances. Filing for bankruptcy can give you some time to rearrange your debts and set up a good plan for paying off your debts. And it will definitely stop creditors from barraging you with threatening phone calls.
Since bankruptcy will cause severe damage to your credit score for many years after you file, you should not make this decision lightly. It is imperative that you speak with a lawyer who specializes in bankruptcy law and determine if this is your only choice.
Credit Counseling: The Best Choice?
If you don't want to file for bankruptcy, you can also avail yourself of the help that credit counseling services offer in order to stop credit card companies from suing you because of debt that you owe. These services try to negotiate a payment plan with your creditors after analyzing your financial situation. When an agreement is made between you, the credit counseling service, and your creditors, you will only have to pay one monthly payment to the credit counseling service. They will then distribute your payment to the creditors.
Although using a credit counseling service can cause your credit report to show that you have made late payments, any negative repercussions that doing so does to your credit will not be nearly as serious as they would be if you had filed for bankruptcy.
Is secured debt consolidation a good way to get your debt paid off? Learn more about what it is and whether it's a good choice or not at the Debt Smackdown website. Visit http://www.debtsmackdown.com for more helpful tips & advice.
Article Source: http://EzineArticles.com/?expert=W._M._Blake