There’s no denying that accumulating a significant amount of debt can be stressful. As your balances rise and you get behind on your payments, the tension grows. You’re not to blame for your current situation, but you still have to cope with it. You might be wondering if a credit card can garnish your earnings. That’s an excellent question, and the answer is…sort of.
To be clear, a credit card company does not have the authority to garnish wages. The credit card firm cannot remove payments from your salary, whether you owe a few hundred dollars or tens of thousands. They can, but, sue you in court and have your salary garnished by a judge.
Before you get too upset by this, you should know that this is usually only done as a last resort. In other words, your credit card account has to be in rough shape before it will even be considered as an option by the card company. Even that may not be enough. What is most likely to trigger being sued? Having a huge, unpaid bill and failing to notify the credit card company of the situation.
Credit card corporations, believe it or not, do not sue people very often; at least not. If they have problems collecting from you, they will send your account to a collection agency. These are the ones who are most likely to file a lawsuit against you. As a result, it is in your best interests to avoid this situation. The best method to do this is to call your credit card provider as soon as possible and explain your position.
Most credit card issuers have programs for customers who are having financial difficulties. They can reduce your interest rate or waive late penalties, among other things, to make it easier for you to pay. These programs usually last a year, but you can usually re-enroll at the end of the year. While these programs are beneficial, you must take the initiative to inform the credit bureaus of your situation.
If you’re still thinking “can a credit card garnish my wages?” you may need to go to court. Remember, this is your chance to tell the judge about your current financial situation. Make sure you have proof of your earnings, expenses, and debts. The court will try to reach an agreement that is fair to all parties involved.
The decision may benefit you in the long run by lowering the total amount you must repay. Your earnings could be garnished if the judge believes you are making enough money. Yet, this is only done as a last option. As a result, an act of good faith on your behalf will count in your favor.