Maxed Out Credit Cards May Eventually Become Dreaded Default Judgments

woman in coffee shop holding credit card

Are your credit cards maxed out? Join the club. As credit card and household debt reach enormous and historical highs quarter after quarter, fifty percent of consumers now possess credit cards that are charged up to their limits.

Unfortunately, far too many consumers today are being forced to use credit cards as an alternate source of income. If you have been forced to over-use the plastic, you may be all too familiar with that feeling of having to dig into the emergency fund and the emergency cards to start covering basic needs. Medical debt—along with being one of the top reasons individuals in the US file for bankruptcy—is often what begins the downward spiral into severe financial distress. There are often other issues too, and sadly often more than one unexpected personal crisis may emerge at the same time such a death in the family or the need to caretake for someone, you may be separated from your spouse, divorcing, or you may be dealing with other problems that significantly impact your income.

The problem with using credit cards is that they can become maxed out surprisingly fast, leaving you with the possibility of no income at all or charging capabilities—and to make matters worse, high limits being used means you could owe large amounts of money to credit card companies who may quickly begin aggressive efforts to see your debts satisfied. Once the delinquencies begin to pile up, you may find yourself served with a collection lawsuit. While this may be a shock at first—and not a pleasant experience—it is not the end of the world if you act quickly!

Without responding to the collection lawsuit, you could find yourself dealing with a default judgment granted against you—and almost automatically if you do not answer the lawsuit or show up in court. The credit card company or debt collections agency is then able to (over a ten-year period if necessary, which can then be extended for another ten) alert your employer to the legal issue and begin garnishing your wages, freezing your checking account until the debt is satisfied, and even seizing and selling off your property at public auction.

Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at info@debtorprotectors.com.

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