What is credit card debt?
One form of debt that is typically sought after by debt collectors is credit card debt. Credit cards are typically unsecured debts, meaning that there was no collateral such as a home or car put up for the use of the credit.
If a consumer defaults on one of these debts, creditors tend to hire debt collection agencies and law firms to collect. A consumer who allows this type of debt to go into default should expect a campaign of calls from a debt collector.
Lawsuits are filed to collect these debts:
In the case of credit card debt, the creditor may have the right to file a lawsuit against the consumer to force payment of the debt through a judgment.
The lawsuit must be served upon the debtor according to the service of process rules of the state in which the consumer resides. Then, the consumer can defend the lawsuit by asserting various defences such as fraud in the creation of the account, or that the amount sought after is incorrect or has been paid, to name just a few.
If the case is not properly defended, then the creditor will obtain a judgment in its favour. When the creditor has a judgment, it may seek involuntary means to force payment such as wage garnishment, asset attachment or lien on the property.
Interest can continue to accrue:
Credit card and unsecured debts typically have agreements with consumers that state that any unpaid balance will continue to accrue interest until such time as it is paid in full.
How debt review can help those with credit card debt
Using a Debt counsellors like ezDebt we will formally review your finances and develop a suitable monthly budget by negotiating with your creditors on your behalf
- Enables clients to make one monthly debt repayment
- Stops creditors from hassling you
- Decreases judgements against you
- Prevents you from declaring bankruptcy
- Maps out the path towards becoming debt free