Arizona residents with a lot of credit card debt may feel overwhelmed by what they owe. However, there are some important things to keep in mind that could cause consumers to breath a sigh of relief. The first thing that all debtors should know is that they will never go to jail for nonpayment of a debt. Although there could be some legal repercussions for missed payments, none of those penalties will ever be time behind bars.
In most cases, credit card companies will negotiate with consumers on past-due amounts to come to a settlement agreement. Some companies advertise services to do this for the consumer, and they can help in some cases. It is important to watch for scams, though, because many companies may attempt to take advantage of consumers or lure them in with false information, such as advertisements to settle debts for pennies on the dollar or guarantees that they will make unsecured debts go away. Some even claim to use a "new government program" to do all of this.
Arizona credit card holders who have trouble making their payments due to job loss, divorce, medical expenses or other unforeseen circumstances may worry about the safety of their retirement funds if they default on their credit card agreement. Banks and other creditors must go through a process before they are able to garnish wages or seize funds from a bank account. In most cases, though, retirement accounts are exempt from such seizures.
Arizona readers who are carrying the weight of credit card debt may be interested in an article discussing what happens if minimum payments are not made. While there will be bad news for a person's credit, the penalties will not be quite as harsh as some bill collectors may imply.
Like other Americans nowadays, a growing number of seniors living in Arizona face large balances accumulated on multiple credit cards and personal loans that literally increase daily due to high interest. This means that minimum monthly payments to each bank and credit card company often makes little progress toward eliminating cumbersome consumer debt.
When couples make wedding plans, it is done with the idea that the money spent will be used to celebrate an important day. However, Arizona residents may wonder what happens if the engagement is broken partway through the planning and purchasing stage. The question may arise as to who is really responsible for credit card debt incurred for items like dresses and engagement rings.
It is not always clear as to whether relatives of someone who has died are responsible for the credit card debt left behind. According to financial experts and several attorneys, in general, those kinds of debts require the credit card company to make a claim and are not the responsibility of any heirs. The estate of the deceased is responsible for the payment of all of the decedent's debts, which are usually subtracted from the assets of the estate and then distributed according to priority. If the deceased has no assets or the debts are greater than the assets, then the outstanding debt is written off by credit card companies.
Arizona residents who've had a loved one pass away may be concerned about paying off any credit card debt left behind. Taking the time to understand how the law handles credit card debt might help clear up any confusion that can arise in such a situation. Determining how the accounts were set up can help determine who's responsible for paying the debt back.