Consumer Reports the Top Reasons To Get Out of Credit Card Debt

HOLLYWOOD, Fla. - April 30, 2017 - PRLog -- More than half of adults in the United States said that they delayed an important decision in life such as retiring, having kids because of financial reasons, according to a study by the American Institute of CPAs. The negative effects of debt like from credit card and loan sharks have impacted consumers more than one can imagine.

Wage Garnishments and Lawsuits

A lawsuit is one way a credit card issuer can get money. Usually, a civil suit is filed so that the creditor can obtain a judgment against you. A lien is placed on your assets to recover money, property or worst, wage garnishment by sending legal documentations to your employer. Employers are required to comply by law; not only will you get less salary but you may also have to face embarrassment from your colleagues. A very good way of preventing you from getting caught up in a mess is by getting help from a professional credit card debt settlement company as soon as you can.

Getting a New Job May Become Harder

Being in a great amount of debt might make it hard for a person to find a job. The reason for this is that employers in numerous states check credit reports of job applicants to make sure you are a reliable candidate. This is possible through the Fair Credit Reporting Act. Companies can get permission to view your credit report.

On the contrary, this security measure is usually just for people who are applying for upper managerial positions or jobs related to finance.

Rental, Loan and Mortgage Rejections

Did you know that you are a less attractive rental candidate when you have debt issues? Landlords often check the renter's credit before leasing property. More so, banks will never approve your application to any form of credit or loan if you have nonpayment for your credit card debts.

Your Debt Can Snowball

Many people choose to default on one high interest credit card so that they can keep the ones with lower interest. However, the penalties that come with not paying credit card debt are something most people oversee.

This strategy does not work because certain clauses in credit agreements state that when a late payment is made, they may be allowed to raise your interest rates.

Dreading the Debt Collector

Delinquent accounts are often sold in bulk to debt collectors. These companies buy your debt for a fraction of what you actually owe and they get the rights to continue collection for your debt. You may have heard of the horror stories already: agents harassing you over the phone, internet and by mail to pay up. They will do all that they can, even sue you in court just like how the original lender can. If the judgment is awarded to the collector, they can garnish your wage or seize your property.

Don't Wait For Wage Garnishment

The first thing you must do when you are in debt is taking care of it right away. Pay if you can. Don't wait for it to blow out of proportion.

If you are in threat of having your wage garnished, and you can't spare any of your salary or if it already goes to loads of important bills, there's something you can do to avoid debtors to seize your paycheck. A reliable debt settlement company can help you know your options according to your unique financial situation.

Very often, credit card companies are willing to accept settlements in lieu of taking matters to the court because this will also cost them time, effort and money.

If you want more information about debt settlement and how it can help you, check out these great sources:

http://www.americanfaircreditcouncil.org/blog/member/cura...
http://www.curadebt.com/debt-management-program/