It happens to everyone at some point or another. A little bad luck can put you behind on your bills.
Before you panic, learn the basics on dealing with different types of creditors so you can keep a little slip up from snowballing into a financial crisis.
Credit Card Issuers (and other “unsecured” debt)
Credit cards, medical bills, and personal loans not tied to any collateral are all considered unsecured debt. Most holders of unsecured debt will wait six months before they put your account into collections – but that doesn’t mean you should ignore them if you run into a cash crunch.
If you do go into collections, the lender can take you to court and garnish your wages to pay off your debt – unless you declare bankruptcy. Assuming your cash flow problem really is temporary, bankruptcy is probably not a great option for you. Instead, call the lender right away (this should be sounding familiar by now) and ask them to help you work out a temporary payment plan. Some credit card issuers actually offer skipping a payment or two as a perk to valued customers.
At The Zolman Law, we believe that your life shouldn’t be defined by debt. We have helped hundreds of people just like you find the relief they deserve from harassing bill collectors, paycheck garnishment, foreclosures proceedings, and – most importantly – the constant worry about money and what to do about your debts.
We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona file for bankruptcy or work through tough tax problems every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing debt. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.