Think twice before ignoring unpaid debts

When your debt begins to feel overwhelming, it can be tempting to stop opening your bills. After all, the stress of opening your credit card bills, medical bills and auto loan statements can be extremely taxing. And you may find yourself asking, “What is the point of opening this bill if I can’t pay it?” These feelings are understandable. However, you are likely to do your financial future more harm by ignoring your unpaid credit card debt and other bills than if you choose to remain engaged.

You may feel like you no longer have to address your debt once collectors stop calling you or once they stop sending you bills. However, it is vitally important to address your unpaid debt whether or not you are still receiving communication from collectors. If you cannot pay your bills in full or cannot pay your bills at all, there are still ways you can take action which are preferable to ignoring these debts.

Depending on your circumstances, you may be eligible for certain forms of debt relief that will allow you to suspend, reorganize or otherwise address your debt payments in manageable ways. You may potentially benefit from filing for bankruptcy protections. Although some of these options may result in some negative financial consequences temporarily, they will likely allow you to regain your financial footing and to have a far brighter financial future than you would if you continued to ignore your debt.

Please understand that if you continue to ignore your debt, you may face serious consequences including wage garnishment and a devastating hit to your credit score. If you are struggling with overwhelming debt and are unsure of what to do about it, please consider contacting an attorney experienced in matters of debt relief.

Source: Fox Business, “What Happens If I Never Pay an Old Debt?” June 2, 2014