Do Nothing with credit card debt

With the average American residence having around $15,000 in unsecured credit card debt and unemployment hitting 15%, consumers are finding it more and more difficult to pay their bills. When dealing with credit card debt, consumers should be paying at least three times the minimum required payment and given this cannot be done, they will soon grow tired of the balances and seek bankruptcy, a debt relief program or stop paying all together. In summary, we'll talk more on this topic about not paying on your credit card debt and break down both the consequences and solutions for it.

The process of making minimums and realizing balances won't move

When consumers are making minimum payments, they often find that the balances owed never tend to move. Due to compound interest and other finance charges, it's no wonder the balances never go down and in turn drive consumers to the brink of insanity which makes consumers seek debt programs or consider stop paying.

Consumers need to be paying two or three times the minimum payments, assuming that they cannot pay the entire balance in full each month. Given a consumer cannot do this, it's only inevitable that they fall behind and end up doing nothing. Most of the consumers we speak with, are consumers whom have had similar balances for years on end. The reason their balances have not moved, is due to high compound interest.

Missing or skipping minimum payments

When dealing with financial  hardship, it's common to miss a payment here or there.  After missing a few payments, consumers then come to the realization of stop paying payments indefinitely.  When this is done, the consumers often hope and pray that the debt will just go away. Now given the debt has a balance of just a few hundred dollars, the possibility of being sued is minimal to none. However, given the debt has a balance of over a thousand dollars or more - the possibility of being sued is extremely high.  Regardless of whether or not legal action is taken against you, a negative mark on the consumers credit profile is a given.

Possible solutions to resolve the debt

If a consumer feels as if the balances are not moving, options such as debt consolidation or debt settlement do exist. Now it's completely understandable that the creditors are taking advantage of the consumers which leads them to this state. Getting no where when making the minimum payments on high compound interest would drive anyone to the point of non payment.  Since the creditors don't want consumers to file bankruptcy, it's reasons like this as to why programs such as debt consolidation and debt settlement do exist.

We recommend considering going through our quote process. After an advisor looks over the situation, we'll be able to break down possible options that may be used to pay on the debt owed.