How Expensive Is It to Ignore Credit Card Debt

by John Stevenson on July 4, 2011

If you are carrying the burden of credit card debt and feel like the only way out is to just keep ignoring it, you should know that is just going to add to your problems. Ignoring credit card debt can be very expensive in the long run. If you are thinking about filing for bankruptcy to evade debt, that is hardly an option. Not to depress you, but filing for bankruptcy is possible only if you are up to your neck in medical debts, that is, you were a victim of circumstances out of your control. Your run-of-the-mill credit card debt does not qualify as such. You made your bed, now lie in it. It is that simple!

Having said that, there are ways to get around credit card debt. The best one is to work out a debt settlement plan, of course. Just do not hope that your creditors are going to be nice and just forget all about it. Your phone will not stop ringing, for one, and that is the least of it. The people from the establishment you owe money to surely know where you work and/ or study, and they will follow you. There are laws that they cannot disturb you at certain times and places, and they are not allowed to harass you, but that’s a very grey area. They probably will, and they won’t call it quits until you pay up.

Another reason it can be very expensive to ignore credit card debt is because your credit score will take a serious hit. As a result, you will be paying higher insurance rates, it will be harder for you to get a job, and the interest that will accumulate on your debt will rise exponentially. This applies to interest on all debt – meaning, all the credit cards you have.

As creditors have the right to start taking the money out of your paycheck, you will start seeing it shrink more and more. It can really suck to work all week for a measly $100 paycheck.

You will have trouble getting a loan in the future. This means you can’t get a car, a house, or anything else. If you find yourself in dire need of a loan, your only option might remain loan sharks, who will give you money at interest in the range of 45 percent. You also will have trouble renting a house or an apartment, because the landlord is not likely to be impressed with your credit report.

Finally, you may start having personal problems because of the debt. It can be very embarrassing to go out on a date and have your credit card rejected. If you are married, this is going to put a major strain on your relationship and marriage, especially if your partner is the saving type. Of course, this applies to guys more.

Again, you can simply forget about creditors stopping to hound you. They will not. Canada was hit as hard by the recession as all other countries, and this is motivating creditors to be as aggressive toward non-payers as ever.

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