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Consumer Debt Soars, Debt Collectors Seek Default Judgments for Delinquencies

consumer debt
  • Feb 12 2020

Consumer debt reaches new highs in the US today, continuing an ongoing trend of historic numbers associated with debt making headlines, yet lenders continue to lend, consumers continue to borrow and spend, and many financial analysts continue to state that this is all great for the economy and may continue to be for an indefinite amount of time.

You may not be all that enthused about the numbers in your own personal economy, however. Your thoughts on growing credit card debt may be quite the opposite as you struggle to make ends meet just to pay the essential bills. The average credit card debt for consumers in the US is over $8,000 and whether you owe significantly more or less than this, without the income to make payments, the greatest worry is what types of consequences will occur.

In most cases, some unexpected personal issue—or even catastrophe—usually arises as the culprit for throwing financial equilibrium completely out of balance. You may have become ill and even spent time in the hospital, found yourself the victim of a major car crash or motorcycle wreck, or you may have lost your job. Family issues may have arisen, student loans may be bogging you down, and it is not unrealistic to find that you are dealing with more than one of these stressful problems at once.

Unfortunately, debt collectors are not in the business of being sympathetic for long; after all, their entire business and the livelihoods of debt collectors themselves are based around one thing: money. And that means that they want to get as much of yours as possible to see debts satisfied. This is understandable on one hand; for example, if you owe money to a credit card company, most likely you made numerous charges with the understanding that you would pay them back. If you are under extreme financial duress though, and do not have the income to pay said bills, other avenues must be explored—not just to make debt collectors happy, but to get yourself back on track to financial freedom also.

And although it may be tempting, procrastination is not considered one of these solutions. Even if you have recently been served with a collection lawsuit, this may be the route you want to take. Time is of the essence though, as it is critical to answer the summons and complaint, as well as working with your collections lawsuit attorney on a plausible defense. Without such action and legal expertise at your side, you are in definite danger of having a default judgment granted against you, and quickly so.

While any creditor or debt collections agency wants nothing more than to see a debt satisfied in full, they are not exactly disappointed about having a default judgment against you either, meaning that they have ten years to wait until you have income for them to garnish, a checking account for them to freeze, or property to seize. They can have it renewed for another ten years after that too.

Our attorneys at Fitzgerald & Campbell, APLC have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Let us review your case and discuss what would work best for you. We are here to help! Click here to schedule a free 30-minute consultation, call us at (855) 709-5788, or email us at info@debtorprotectors.com.

 

Posted in: Judgments