January 13,2009
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Other CC Fears You May Have, Pt.4 –
– Credit Card Punishments."Can they really put me in jail over credit cards?":
The good news is you can't go to jail over credit card debt. Bad checks and fraud are other matters, altogether. In this country, there is no ‘debtor's prison'. As unlikely as it seems, if a creditor threatens you with jail, rest assured their bluffing. It can be quite intimidating, however, when we receive those scary notices with large bold print of how much trouble we're in and we do suffer risk if we don't read the fine print. There may be ominous warnings of what may be coming, but it won't be jail. Probably, the worst that could happen is garnishment of your wages and/or assets. Certainly, this is serious enough. So, if you do receive notice of this intent, it becomes necessary to address the issue soon. This brings up the last fear in this series concerning ‘garnishment' over credit card debt."Can they take me to court for garnishment?": This is a worst-case scenario and can't be ruled out. But rest assured, if you stay abreast, you will have advanced warning and time to act first. If your unpaid credit card debt is substantial enough, a lender may find it necessary to go to all the trouble involved in following this through. Credit card lenders hate to do this so, if you are notified that a suit is being filed, you should know that the lender is resolved to great commitment on this debt. Here, an ounce of prevention on your part can go a long way. Sometimes, it becomes advantageous to finally work out a mutual and workable payment plan to stave off the worst. Wage garnishment is limited to 25% of your wages (if you earn less than $764 per week). But non-wage garnishment can freeze all your assets, abscond your retirement and take things out of your house and sell them. Avoid this route, if at all possible.