What are some of the consequences of not repaying a debt?
So here’s what you can expect if you don’t pay your debts:
- Your debt will go to a collection agency.
- Debt collectors will contact you.
- Your credit history and score will be affected.
- Your debt will probably haunt you for years.
- You’ll pay off the debt or not, but life will go on.
When a debt could not be repaid a person was forced to work to pay it off?
Debt bondage occurs when a person is forced to work to pay off a debt. They are tricked into working for little or no pay, with no control over their debt. Most or all of the money they earn goes to pay off their loan. The value of their work invariably becomes greater than the original sum of money borrowed.
What kinds of help are available to debtors who have credit problems?
If you or someone you know is in financial hot water, consider these options: self-help using realistic budgeting and other techniques; debt relief services, like credit counseling or debt settlement from a reputable organization; debt consolidation; or bankruptcy.
What does debt stop you from doing?
When you have debt, it’s hard not to worry about how you’re going to make your payments or how you’ll keep from taking on more debt to make ends meet. The stress from debt can lead to mild to severe health problems including ulcers, migraines, depression, and even heart attacks.
Can the government pay off my debt?
There is no government program that forgives or even minimizes the burden of paying off your credit card balances. There are, however, 501(c)3 nonprofit consumer credit counseling services that work with you to provide debt relief. These agencies are funded through grants from credit card companies.
What should I do if a debt collector sues me?
If you’re sued by a debt collector, you should respond to the lawsuit. You can respond personally or through an attorney, but you must do so by the date specified in the court papers.