Credit Card Rewards & Points May Dead End in Delinquencies & Default Judgments
The last thing you envision when you open that crisp white envelope and pluck out a shiny new credit card is yourself in court fighting a default judgment. In the moment, you are looking forward to a set of points or rewards meant to set you up for even greater savings—and in the end, greater financial success. For some consumers this does work out, even as they juggle a shocking number of credit cards, contributing to the average of $8,158 per household. More than 200 million consumers are cardholders, with 42 percent of them paying off balances each month.
Rewards and point systems are usually attractive to consumers with specifics interests and goals, whether that may be dining out, travel, or other activities, or they may be drawn in by offers of zero percent interest—often just extended for a limited number of months. Numerous cards with different perks may support a certain type of lifestyle, and especially with the millennial crowd. While they may not live in fear of what will happen to their credit reports at any point in time as previous generations did, they do tend to be more sophisticated about taking out credit cards that work for them.
No matter the age group, some consumers may become addicted to taking on new credit cards, always looking for the better deal. This all works out fine while monthly balances are being paid. But that can all come to a screeching halt with the unpredictability of finances, and life; for instance, you may be take on all the credit you want and not worry too much while you have a substantial income. A loss of hours at work or complete unemployment could make it difficult—or impossible—for you to pay creditors though, along with other issues such as illness or a debilitating accident. During such a time, you may be forced to prioritize what gets paid, with housing, the vehicle payment, groceries, and prescriptions usually coming before anything else. And while that is an obvious course of action, creditors may quickly become unsympathetic to your plight.
Late payments may escalate into serious delinquencies. If you cannot agree to an alternate arrangement or offer a debt settlement, you may find a process server at your door, bearing a summons and complaint. This means that the creditor has decided to go through with suing you, and if you had multiple credit card accounts, there may also be multiple collection lawsuits. If not responded to, you could be facing multiple default judgments. With the help of a skilled attorney, there is always a solution. The best course of action is to respond to any lawsuit; however, if you were not able to do that, a motion to vacate may be possible, along with fighting any judgments to avoid wage garnishment, levying of bank accounts and property, and more.
If you are finding it difficult to pay your bills, or are being sued, or have judgments granted against you, contact us at Fitzgerald & Campbell, APLC. We can review your current situation and discuss your options with you, whether that means fighting in court, negotiating a settlement, filing for bankruptcy, or more. Our attorneys have decades of experience representing clients in all types of financial matters, and we are here to help you! Call us today for a free consultation at (855) 709-5788, or email us at firstname.lastname@example.org.