Having unpaid credit card debt is a far too common thing these days, and it can be scary. Every time the phone rings or you get a funny-colored envelope in the mail box, you wonder if it's a bill collector. It would be so much nicer if you could live your life in peace, but you can't ignore your way out of this problem. Luckily, there are some things you can do to get the credit card companies off of your back.
NOTE: Always check with a qualified financial specialist such as James Milne Accountants when making decisions about money. There may be tax, legal and financial consequences that need to be considered.
The law states that you can send your creditors a cease and desist letter asking them to stop contacting. If you prefer, you can tell them which ways they are allowed to communicate with you. After receiving the letter, they can only contact you one more time to let you know that they got the letter, and how they plan to proceed from that point forward. While a cease and desist letter can bring you some relief, it isn't always the best solution. Most creditors will take this to mean that you are not planning on repaying your debt, and that could lead to them suing you.
No matter how bad your situation is, and no matter how big your unpaid credit card balance is, it's a good idea to contact your creditors. Sure, it may not be a pleasant experience, but it's much better than being sued. Furthermore, the credit card companies have been affected by the bad economy, and that means they are more willing to deal with their cardholders.
Believe it or not, having unpaid credit card debt can actually work in your favor when negotiating. See, by paying on time and making regular payments, you are demonstrating your ability to pay. Even if it's not as much as they want, even small payments prove that you have some money. On the other hand, if you haven't made any payments for a while, then the credit card companies start getting nervous that they won't get any money from you at all. From their viewpoint, they would rather get something than nothing, and that translates into a good deal for you.
As mentioned earlier, you can't ignore your way out of debt. Unpaid credit card debt will eventually catch up to you in one form or another. If you are proactive, then you will be able to minimize any negative impact it may have. If you try to ignore, for whatever reason, then you may end up being sued, having your wages garnished, or being forced into bankruptcy.
The good news is that your creditors will almost always be willing to work with you, and most will accept very small payments (at least temporarily). Unpaid credit card debt needs to be dealt with as soon as possible because the longer you go without paying, the worse the problem becomes. So, go ahead and take action now, you will be glad you did!