Credit card debt: What happens when accounts fall behind
There are many individuals in Tennessee and elsewhere who have experienced the challenges of falling behind on credit accounts. Credit card debt is one of the most prevalent causes of financial strain and similar issues can have a substantial impact on a person’s financial future. While some may be aware of the risk of missing payments on credit card accounts, they may still be uncertain of what happens after an account falls behind.
While missing a credit card payment can be detrimental, it may also be a common occurrence for many. In some cases, those who encounter periods of significant financial hardship may find it challenging to make even the minimum payment on accounts, while in others, one might just forget to make a payment by the due date. Unfortunately, even one missed payment could leave a person facing an unfortunate scenario.
Once a payment is missed, the past due balance may trigger a late fee or disrupt promotional interest rate periods. As accounts fall further behind, one may begin receiving frequent collection calls and interest rates on accounts could continue to increase, in some cases, up to as high as 30 percent. Past due accounts may also appear on a person’s credit report, which can have a devastating effect on one’s financial future.
Dealing with extensive amounts of credit card debt can be a harrowing process. Those who encounter similar concerns may wish to know more about the available outlets to pursue financial relief, and they could choose to speak with an attorney for some much-needed guidance. An attorney in Tennessee can examine a client’s situation and assist him or her in forming a strategy to reduce or eliminate debts and work back toward financial stability.