Be aware of the dangers of Credit Card debts

For many people using a Credit Card while shopping, or paying a bill seems to be the best option. But they don’t know that using misuse of this plastic money will leave them in debt. If you are unable to pay your Credit Card debts, The credit institute blacklists your name in the credit file, causing a lifelong problem for you to secure future loans and mortgages.

Credit Card debt brings lots of problems. If you are under Card debt and unable to pay off your debt, here are ten important things that you should be aware of.

  1. The Creditors will keep calling you or send you letters or emails until and unless you pay their dues. In Card debt monthly repayment is most important, so always remember to pay your monthly payment.
  2. Secondly, you may get a default notice for not paying the debt. The notice is a formal letter that specifies the amount to pay till date, specifying the last date for payment.
    This default notice is sent to the debtor, if he has missed six or more payments. If you have received such a letter, try paying it within 14 days then no action will be taken against you.
  3. A long-term debt is always sent to the collection agencies.
    Once the debt passes on to a collection agency, you have to pay your pending bills to the agency directly plus all the interests maturated.
  4. The debt collector may often call you or may visit your home for collecting the payment.
  5. If you are unable to pay the card debt, you will be charged with a fixed penalty or certain interest charge.
    The interest or penalty may increase your debt amount, so it’s very essential to pay your monthly payment without fail.
  6. Failure of payment may lead to legal procedure. So, you will have to respond to the Court Notice and have to present your income paper to the Court. The County Court will instruct you to make payments to the Creditor on realistic terms and no legal action will be taken against you.
  7. If you fail to pay the installments as instructed by the Court, the Court will deduct a certain amount from your salary, by contacting your employer. An administrative fee will also be charged each time.
  8. The Court may also pass a charging order on your property and in that case your property will be secured to pay the debt.
  9. If you fail to comply with the County Court Orders, bailiffs will be instructed to take control on your assets or belongings to pay off your debt.
  10. As a last resort, the Creditor will try to make you bankrupt so that he can recover his money by selling your assets.

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