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COVID Based Credit Card Debt: Handling Delinquencies Now

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Nearly everyone in the US was affected in some way by the vast and unexpected repercussions of a viral pandemic that swept through nearly every part of the world. While initially, the coronavirus seemed far away, with most of us having absolutely no clue of how deeply it would affect life as we knew it, the ramifications seemed worrisome regarding health. Over time it became extremely clear that the virus had the potential to be fatal. Millions of Americans became sick, and hundreds of thousands died, leaving family and friends behind to mourn.

The even more troubling, compounding factor was how devastating the pandemic was to finances. Beginning with the US economy and then trickling down to the personal finances of so many individuals who lost their jobs, COVID-19 was monumentally challenging. In the spring of 2020, tens of millions of people lost their jobs, and for many, that was completely without warning. It took a loan time for the job market to even begin coming back, and recovery will not be immediate as much as everyone would like to be optimistic about getting back to normal—as much as that is possible after dealing with such upheaval.

Not surprisingly, some Americans turned to trusty plastic in order to get by. While many were already wondering how to deal with pre-COVID debt and credit cards were run up to the max, for those who had saved credit cards and not spent up to their limits, the time to use that ‘emergency fund’ had certainly come; in fact, recent news shows that around 51 million Americans were relying on credit cards to pay bills and get cash too. Studies also showed that their confidence in being able to make payments on their balances or to pay back debts in full was waning.

If you are worried about credit card debt or if you are being sued, speak with an experienced debt protection attorney as soon as possible. This is one of the common financial issues, and is certainly not insurmountable. It is imperative to reach out for help though, rather than trying to deal with such problems alone. It is understandable you might feel embarrassed, but especially now you are not alone.

As the US gets back in swing, so do the courts—and along with that, creditors and debt collectors are back in action serving collection lawsuits, many of which are related to credit card debt. The situation becomes more dire if you have become so delinquent that either a creditor is suing you themselves (and many of them are extremely litigious) or they have sold your account to a debt collection agency and they are suing you.

If you have been served with a summons and complaint, reach out for legal help immediately. Most likely you have 20 to 30 days to respond and outline a defense. Without such action, you could find yourself much more vulnerable to aggressive collection activities like loss of your wages up to 25 percent of your disposable income in California, seizure of your valuable assets, or loss of control of your own financial accounts.

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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