It’s no secret that the economy could need a boost. Unfortunately, the terrible economy is having a negative influence on many people. Even the most hardworking and honest people are facing financial difficulties as a result of events beyond their control. Credit card judgments are a real possibility if you have credit card debt that is starting to pile up and you are unable to make payments.
In general, you will be sued to recover as much money as possible. Don’t get too worked up over it now. Even though it is a serious subject, getting sued is only being hauled to court so that a judge can try to reach an agreement. If the judge determines that you owe money to your creditor, a judgment will be entered against you.
In some situations, a judgment may be the better alternative for you. The judge should look at your present income and expenses, as well as the amount you owe all your creditors. After that, the judge will decide how much you owe. If your circumstances are dire, the judge may opt to reduce the sum. Also, the judge may give you very good terms for the repayment of your debt; making sure to give you enough time to pay it off.
But don’t get me wrong. Credit card judgments are unpleasant and should only be utilized in extreme circumstances. Avoiding being sued in the first place is a far better alternative. Taking out a new loan to pay off your credit card is one way to do this. You’ll still have to pay back the loan, but it won’t be under your credit card’s terms. Credit cards are the worst type of debt, so any type of consumer credit makes more sense.
The simplest solution is to contact your credit card company as soon as you notice you’ll be late on a payment. Some credit card issuers will place a temporary hold on your account, allowing you to get back on your feet. They might also be willing to enroll you in a so-called hardship program. This type of scheme will lower your interest rate. But, there is a catch. You won’t be able to use your credit card once you’ve enrolled in such a program, which is actually a good thing.
Finally, pay any credit card judgments that have been issued against you. If you don’t, your wages may be garnished (money deducted from your salary) or a lien placed on your house until the debt is paid off. The most important thing to understand is that getting sued and having a judgment entered against you are not as horrible as they appear, and may even assist you in regaining your footing.