What will happened to a person with unpaid credit cards?Any legal actions taken against them?

Question

please include the risk?the case that will be filed?What if there no enough resources or asset and no more capability to pay? In the Philippines what are the usual step taken against such case?

Answer 1

unfortunately I tried this method when i was younger.  It ruins your credit for a long time, but most of the time, they hound you for a few months, then "sell" your account to collectors who will hound you MUCH more than the CC companies.  I don't suggest doing this, try to work with the CC companies and get a payment plan that works for you.  My credit has "healed" over the last few years and I just bought my dream car with just my signature (and $ down, of course).  Try to work with them.....

Answer 2

Typically CC companies will not take legal action against you.  They will send your debt to a collection agency who will hound you for a period of time.  After that you will be left with tarnished credit.... you will never be able to buy anything you cant pay cash for.  One day you will wake up and realize you want a car, a house, a family and you will not be able to do any of these things because ten years ago you decided to stop paying your credit cards.  Im 26 have 2 cars that are paid for and am about to buy my second house.  I dont make a ton of money... but i have excellent credit.  I have friends who make way more than me who dont have squat because they can get financing and the financing they get requires them to pay ridiculous amounts of interest.  If you havent already stopped DO NOT STOP PAYING, if you have stopped, START PAYING AGAIN.  

Answer 3

If you do not have the means to pay, you need to look into filing bankruptcy.  Otherwise, what the previous posters is pretty much dead on.  You need to contact your credit card companies and work out a payment plan with them.  Another option is a debt management company (not to be confused with debt consolidation - very different).  Debt management companies work with your creditors to lower interest rates and then make payments on your behalf.  You pay the management company (1 payment), and they take that money and send it to your multiple creditors.