What Happens When You Cannot Make Your Monthly Credit Card Debt Payments?

Posted by Matthew Highlander

October 14, 2009

by Matthew Highlander

Does the possibility of not being able to pay your credit card debt concern you?

Are you getting behind in your credit card debt payments? Have you incurred late-payment penalty fees, higher interest rates, and increased monthly minimum payment amounts?

Have you thought about bankruptcy?

Joblessness, a major health crisis, a failed enterprise, a family death, or financial mismanagement could have cleaned out your savings. Whatever the reason is for your credit card debt problems, you can escape the negative assumptions and harsh thinking about bankruptcy or impatient, aggressive debt collectors with some basic education about unsecured credit card debt.

Learning the truth about credit card debt collection is the key to peace of mind for consumers with late credit card debt, according to the Credit Card Debt Survival Guide. Eight percent of American adults (18 million people) missed a credit card payment in the last 12 months, according to creditcards.com. If your account is in arrears, it is one of millions. Your delinquent account can be one of thousands, tens of thousands or hundreds of thousands of credit card accounts sold in a package of junk debt for ten cents on the dollar or less to a junk debt buyer.

The credit card companies to budget for bad debt per Federal Reserve regulations. Their planning assumes a certain percentage of consumers will not pay their credit card debt. Then, the credit card debt collectors who end up with those debts assume there are two kinds of consumers; those who do not resist their collection efforts or do so ineffectually and those few who do resist.

Your safety and security are in the numbers, in the millions of charged-off accounts and in the pennies per dollar each is actually worth. If you resist debt collection attempts (after you learn how to properly do so), it is simply not profitable for a debt collector to put more time into chasing you, when they can put that time in getting the easy returns from the many other people who put up no resistance. Credit card debt collectors can make a lot of money, if they only collect from 50 percent of the delinquent accounts assigned to them.

With a knowledge of the Fair Debt Collection Practices Act and its use, a grasp of your state’s consumer protection laws and, if needed, your local court’s rules of civil procedure, you can begin defeating credit card debt collectors.

About the Author:

Matthew Highlander writes for the Credit Card Debt Survival Guide, a handbook with proven, legal non-payment and settlement strategies for consumers who cannot afford to pay their credit card debt.

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