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Understanding the potential consequences of dealing with debt

On Behalf of | Apr 21, 2018 | Credit Card Debt

Substantial financial concerns can leave individuals in Oregon and elsewhere uncertain about the future. Those that are struggling with high amounts of debt may also feel crushed under the weight of the constant collection calls and letters. In addition to the stress debt can bring, a person may also have concerns about what will happen if he or she is consistently unable to keep up with monetary obligations.

Missing a due date can bring about costly late fees and, in certain lines of credit, could bring about an increase in interest rates. However, for those who are constantly unable to make their minimum payments, their accounts could wind up going to a collection agency. Although this may only lead to constant contact attempts, once a certain period passes without payment, creditors may choose to pursue legal action.

While the threat of a lawsuit is stressful enough as is, a person who is experiencing similar financial concerns may face additional concerns, such as the impact debt can have on his or her credit. A debt can remain on a person’s credit report for up to seven years from the date his or her account became delinquent. This could have a negative effect on a person’s credit score, which could in turn have an impact on various areas of his or her life.

Individuals who are constantly dealing with substantial amounts of debt may wish to protect against potentially devastating consequences. However, without experience in the area, they might be uncertain of the options available to them. Fortunately, there are attorneys who can provide a person in Oregon with guidance on how to pursue relief from debts and work his or her way back toward a brighter financial future.

Source: U.S. News & World Report, “What Happens if You Don’t Pay a Debt?“, Geoff Williams, April 3, 2018

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The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 22 years.