If you stop making account payments, you could pay a heavy price.
You can expect your:
- Credit Record to be badly affected,
- Creditors will charge you late fees and a high penalty interest rate,
- The more payments you miss, the greater the consequences for you,
- Your creditor could send your account to an attorney or a collection agency,
- Expect legal action, such as a summons that could lead to a judgement tying you up for up to 30 years, and
- Late payments will remain on your credit reports for a number of years and will prevent any future credit that you might seek
It took you many years to get into debt, therefore you will need to be patient. Getting out of debt will also take a while and there is no quick fix.
“There is a path to recovery”.
The best way to bounce back from debt is:
- do not panic,
- do not go into denial,
- do something about it, but if you do nothing then you can start to panic,
- seek help with an experienced and reliable consolidation programme,
- draft a budget with the help of the consolidation plan,
- take a hard look at reducing expenses and stick to your budget,
- regularly pay towards this plan, and
- keep moving forward – do not look back.