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Late Payments on Credit Card Debt

Late payments?

Are you looking for direction on what to do about late payments on high interest credit card debt? If you are getting calls for late payments by your credit card company and threats to take you to court, you need to know your rights and how to deal with this situation. If you are late on a credit card and have not caught up on your past due balance, each month going forward is considered a late payment until you are caught up on your minimum payment.

How late are your credit card payments?

For example, if you missed a $300 minimum payment last month, but were able to pay the $300 this month, you are still one payment behind. This means that you are not only late on payments from the initial month when you first missed the $300, but each month is considered late until you are completely caught up on your payments, meaning you would need to pay the $300 minimum for the current month and also pay the $300 for the month that you missed in order to stop the late payment from recording on your credit record. Every consecutive month where you are still missing one payment will be considered a month with a late payment even though your balance is only one month behind. This type of late payment is definitely detrimental to your credit report. Your credit score will suffer more and more the longer you hold this debt. A deteriorating credit score is only the beginning. Collections calls may soon follow with threats of a lawsuit. A lawsuit can be filed anytime after your contract has been breached, meaning anytime after you are late on a credit card, a lawsuit can happen. When you are being threatened with a lawsuit for your credit card debt, it could be a realistic threat. A lawsuit can result in a wage garnishment where a percentage of your wages will be deducted in order to pay back your past due debt. This would include notification and cooperation with your employer to collect the debt from your wages.

How can bankruptcy help with credit card debt?

You can avoid all of this activity by filing a bankruptcy to remove all of your liability from your unsecured debts which includes all of your credit card debt. A bankruptcy will allow you to stop making payments towards your credit card debt and also eliminate other debt including auto loan deficiencies, old past due rent, or old cell phone debt.

Bankruptcy Law Professionals can help you through the bankruptcy process to manage all of your debts with a bankruptcy filing. We offer free consultations for all of our clients by phone or in our office. Contact us at 855 257-7671 to schedule an appointment.

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