Credit Card Collections Can Garnish Your Wages
Unpaid credit card bills? Credit card companies can sue you to garnish your wages. Don't wait for this to happen. Failing to pay your bills can damage your credit for many, many years.
Credit Card Problems? Struggling to Make Your Credit Card Payments?
If you are having a hard time paying your credit card bills, the single best thing you can do is call your credit card company - before they call their credit card collections agency. Credit card companies are more willing than ever to renegotiate your payments and possibly make other arrangements to handle your debt. If you default on a credit card, bigger troubles can begin.
Credit Card Collection Agencies
If you fail to make payments on your credit card, the credit card company will very likely sell your debt to a collection agency, also known as a debt collecction agency. The collection agency wants to cover the cost they paid to the credit card company for your debt. If you are unable to pay the collection agency, they may sue you or file a judgment against you. The collection agency may even garnish your wages to collect the debt - but only if it's legal to do so in your state. Contact your state attorney general's office to learn if
garnishing wages is legal in your state.
Garnish Wages and Other Assets
If your wages are garnished, the collection agency receives a portion of your paycheck to be applied to your debt. Though wage garnishment is more commonly used to collect unpaid taxes and child support, garnishing wages can also be used for unpaid credit card debt. If garnishing your wages isn't adequate to pay your debt, other assets can be used. If you own a home, for example, a lien can be placed on it for the amount remaining to be paid. When your home is sold, creditors get paid first.
Don't Wait for the Worst
Take a good hard look at your debt, and then take an equally good hard look at your ability to pay it down. If your debt has become too large for you to handle, call your creditors right away.
If you let you debt get out of control and fail to make payments, your credit card company will most likely sell your debt to a collection agency. The collection agency can sue you, and possibly garnish your wages and other property.
Don't wait for this to happen. Failing to pay your bills can damage your credit for many, many years.
Source: Neighborhood LinkSource: www.neighborhoodlink.com