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The Curious Bag
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Issues such as job loss or other bills can cause you to miss your credit card payment or stop paying it altogether. If you do not pay your credit card bill, it does not disappear. The debt instead remains on your credit report for a specific time frame as unpaid.
Credit Card Debt
Credit card debt is any outstanding balance you owe your credit lender, plus any fees and late payments the lender or collection agency adds to your account balance.
Rights
You have the right to dispute your credit card debt. Once you have been notified of the debt, you have 30 days to dispute it with the lender or collection agency.
Effect
Credit card debt can have a negative effect on your credit report. A negative credit report lowers your credit rating and score, which could prevent you from being extended credit in the future.
Warning
When you do not pay your credit card debt, your wages can be garnisheed by the collection agency or lender handling your account. A wage garnishment is court-ordered, and your employer has to garnishee your wages until the debt is paid in full.
Solution
To prevent a collector from contacting your job or the courts, you should contact the collector to discuss a payment option. Sometimes the collector will settle the debt for a lesser amount, or will set up payment arrangements.
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