What Happens In A Non Payment of Credit Card Situation?

What Happens In A Non Payment of Credit Card Situation?

If you find yourself in a non payment of credit card situation, be ready for some interesting events to take place. You see, a non payment of credit card will set into motion a fairly predictable sequence of correspondence from your creditors.

First off, you will probably receive a barrage of letters and phone calls. This harassment is designed to get you to do one thing, pay up. Your creditor would love to see you get into a monthly payment arrangement and they will offer to reduce your interest rate and forgive services charges.

If you decline the credit card company's offers, expect the phone calls and letters to keep on coming, and your neighbors and family members may start receiving calls too.

Finally, as your account comes close to charge off, the credit company may give you a settlement offer. These offers from your creditors usually start at around 50 to 80 percent. If you can hold out and negotiate, you can sometimes get them to lower your total to 40 or even as low as 20 percent. Keep in mind that a settlement has to be paid back in one lump sum, unless you can negotiate that too.

Once your account charges off, expect that it will go to a collection agency. These agencies are a little more ruthless about calling you and relatives. They do have laws they must follow, but not all of them do!

Finally, you may get taken to court, and may have your wages garnished or a lien placed on your property. Anyway you look at it; a non payment of credit card scenario is something you want to avoid.