What happens if you are over 3000 dollars in credit card debt and cannot pay it back?

Answer 1

The company will try to get you to pay. If enough time goes by, they'll sell your debt to a collection agency, who will do everything they can to get as much as they can from you. Your credit rating, of course, will go down and the debt will remain on your credit history for seven years. Contact the lending company and see if you can work out a payment plan. Many companies will set up a special plan if they think you're sincere and they can make back their money. They may also suggest a charge off, in which case you make one lump payment that's less than the balance. However, that reflects very poorly on a credit report. Whatever you do, keep in touch with them and show them you're proactive in trying to resolve the debt. * Bear in mind that either the original creditor or the 3rd party collector has the option to sue for the amount owed plus legal and court fees. There is often a misunderstanding relating to credit cards being unsecured debt. Unsecured debt simply indicates that there is not specific property being used as collateral to secure the debt owed. The lender/creditor can execute a judgment against all non exempt property owned by the debtor, in many cases even that which is jointly owned by a non debtor. The debtor should do everything possible to avoid a lawsuit!