Quick question about credit card debt

Sweet P

Sweet P

Bluelighter
Joined
Mar 25, 2009
Messages
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I have a credit card which I've maxed-out to $5000. If I stop making the minimum monthly repayments can the bank take legal action to recover the money, or will it just affect my credit rating?
 
They may send a debt collector to find you if you become unresponsive to their bills.
 
they can sue you and obtain a judgment. and they are definitely going to have debt collectors hassle you.

so yes, they can do more than ruin your credit.
 
On a positive note, you usually cannot be thrown in prison for debt. However, there are exceptions to this in some states, including some for the non-payment of child support. As pointed out, there are garnishment laws in most places where creditors can go after a certain percentage of your take home pay. If you cannot afford to make the minimum payment on your credit card bill, it is almost always best to talk to your credit card company to try and work something out. Late fees, collection fees, and interest can pile up pretty fast.
 
Ah, I forgot about those pesky debt collectors. I guess I'd better keep up with the payments! :\
 
Staying afloat making the minimum payment is the better solution. If you absolutely must default, I advise you to park yourself at creditboards credit forum for a few days and read up all you can on collections and disputes. There are two ways out of every "no way out" situation.
 
SA said:
Staying afloat making the minimum payment is the better solution. If you absolutely must default, I advise you to park yourself at creditboards credit forum for a few days and read up all you can on collections and disputes. There are two ways out of every "no way out" situation.
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Good advice. I'm not in any major trouble - I'm able to keep up with my payments. I was just curious to know what the consequences would be if I stopped making them. ;)
 
Thanks, SA. There have been a couple of great threads on debt and collection that I might roll into our FAQ links since this seems to come up time to time.
 
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