what’s gonna happen if i don’t pay my personal loan and credit card debts?
Wednesday, October 13th, 2010 at
6:38 am
do you know of any credible debt consolidation companies? i’ve heard that most of them are just scams. your answers will be greatly appreciated. thanks!
Tagged with: Card • credit. • Debts • don't • gonna • happen • loan • Personal • what's
Filed under: Debt Consolidation Personal Loan
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Consumer Credit Counseling is a non-profit that is NOT a scam…they are paid for by local businesses and chambers of commerce. They do on-line, in-person and on-line counseling. Look for them in the white pages of your phone book.
If you do not pay your personal loan and credit card debts, court judgments can be levied against you, and filed against your wages and any property you own. That means that when you go to sell your house, you can’t sell the house until those liens are paid in full…the deed to the house will be held up in the country or city where you live, at the courthouse where your ownership of the house is recorded, until the debt is satisfied.
Furthermore, if you want to buy any other real estate, or don’t own a home and want to get a mortgage, no one will want to give you a loan for a home…
Bottom line, make every attempt to settle your debts and pay them off…guard your credit score like you would your virginity…because once compromised in the wrong way, there are bad consequences for both!
A Collection Agency will come after you and then you’ll also owe for their fees as well, and you’ll get a bad credit rating which will follow you for life, As for debt consolidation I really don’t know enough about them to give you any advice concerning them.
One of two things will occur if you default…they will either sell the debt to a collection agency, which will try to annoy you into paying….or, they will serve you a summons and take you to court…if they win a judgment this could lead to wage garnishment. Every creditor is different so it’s impossible to predict how they will respond.
Stay away from any “debt consolidation” company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.