debtconsolidation-programs

What happens if I avoid credit card consolidation?

What will Happen if you avoid?

If you are deep in credit card debts and your credit counselor has suggested that credit card consolidation is the only debt help option that will meet your requirement, it is better you abide by the suggestion of the credit counselor. But due to a sudden financial crisis if you have to postpone availing credit card consolidation, it may not go down well with your creditors. It may be so that you were all prepared to enroll for the credit card consolidation program but an accident or a medical emergency requires you to divert your funds to meet the crisis.

Under such circumstances your creditors have the right to chase you for their dues. You can talk to your creditors directly and let them know that you are facing financial crisis. If you don’t let your creditors know about the crisis, they may chase you or sell your debt account to a collection agency. And if your debt account is sold to the collection agency, you have difficult times ahead. They harass you by making calls; sometimes they also call your workplace and don’t be surprised if they use abusive language.

So, there is only one way you can avoid making payments for your credit card debts and that is if you file bankruptcy. Filing bankruptcy will prevent your creditors from coming after you as a result of automatic stay. And as per new federal bankruptcy laws, you need to attend a credit counseling session at least 180 days prior to filing bankruptcy. So, you may not have that much time.

However, if the credit counselor has suggested credit card consolidation as the debt solution you qualify for, it is better not to let this opportunity go in vain. There are many benefits of credit card consolidation and you will be able to manage your debts better. Not only that, you will also enjoy reduced interest rates and lower monthly payments.

If you are not being able to make payments for the credit card consolidation program you enroll for, there are many non-profit credit card consolidation firms that can come to your rescue. These companies taking care of credit card consolidation charge very nominal fees or don’t charge any fees at all. However, make sure you choose the correct credit card consolidation company as there is no dearth of scam artists in the debt help industry.