The "Do Nothing" Option
Are you sick of your credit card debt, or collection debt? Ignoring the debt owed is definitely the last thing you’d want to do. Are you actually considering doing nothing with your debts, and hoping that they will go away? Well if the debts are under $500, it’s a possibility that nothing will happen. This comes down to risk vs reward. The major corporations have to decide whether or not its in their best interest to hire lawyers to go after clients whom decide to not pay on the debt they owe. Consumers whom have debts over $1,000, will most likely have legal action taken against them in order to reclaim the debt they rightfully ran up.
Many people who ignore the debt they owe, will often find the following happen to them:
- They will often be taken to court and have a judgment
- Garnishment of wages
- The consumers credit score will be literally destroyed
- Consumers may be harassed at home, or at work (via US mail and telephone)
Consumers, whom ignore the debts owed, are just begging for one of the above things to happen. Many consumers, whom think this debt will just go away, are seriously confused. Smaller debts in most cases will stay on the consumer’s credit report for X amount of years, X being the number allowed by law on the statute of limitation laws allowed in the state the consumer resides in. When consumers start to seriously fall this far behind, its often best to consider debt settlement as a method to consolidate debt. Other programs like consolidation are for consumers who are current with active credit cards.