Judgments on Credit CardsWill You Be A Victim?
When you incur credit card debt and fail to pay it off, a judgment is entered against you. Credit card debt collection agencies and you both have to show up in court when someone sues you. You will be served with a credit card judgment against you before you exit the courtroom if you are owed the money.
I don't understand. In a credit card judgment, the court has determined that you are financially responsible for the debt and has issued a payment order. You might not have to pay the whole amount all at once. Actually, the opportunity to pay is practically always presented to you.
Then, after the verdict is in your favor, you'll have specific instructions on how to pay off the debt. If you miss even one month, the judge may summon you back to court.
In what ways are credit card judgments preventable? Staying out of court is the first and most apparent step. Your credit card debt should be paid off as soon as possible if at all possible. Due to the compound interest rate on most credit cards, practically any other form of debt is better than credit card debt.
However, you should exercise caution before obtaining a loan of any type in order to settle your credit card debt. Your home is at risk if you take out a loan using it as collateral and then fail to make your loan payments. Finding other means to pay off the debt would be far preferable than putting yourself in that terrifying scenario.
To reduce your debt, you should do whatever it takes, including working more hours or getting a second job. You might be wondering when you'll get any sleep because that sounds so extreme. You should think of the sacrifice you make as a worthwhile one.
You won't have to toil like a dog indefinitely if you can substantially reduce or eliminate your debt. If you want to avoid lawsuits and credit card judgments, this is a quick cure that won't last forever.
Your salary might be garnished if you fail to make the payments despite appearing in court. A mortgage may be placed on your property. Unless the debt is extremely large, the seizure and sale of your property to settle a credit card debt is highly improbable.
However, the credit card company would receive the full amount of the lien if you were to sell your home. Because of this, you may not be able to purchase the house of your dreams and the sale as a whole may be affected.
A credit card company will collect any amount you owe them at some point. If you want to avoid paying off your debt, filing for bankruptcy is your only option. Furthermore, bankruptcy may be out of the question for you.
In any case, you should try to stay out of bankruptcy as much as possible by finding other means to pay off your debt and stop creditor judgments.
