There are several likely outcomes that stem from trying to ignore debt collectors, and none of them are advantageous. To put it frankly, ignoring your debt won’t make it go away. Here are the most likely scenarios that ignoring your debt will lead to, though.
Why You Shouldn’t Ignore Debt Collectors
- Your credit suffers – A collection account is likely to appear on your credit reports whether you work with debt collectors or not. If you attempt to speak with a collector, however, you will at least have the chance to present your side of the story and maybe work something out with them.
- Your debt grows – Failure to pay your debts could result in the collector adding interest and collection costs to your debt. It all depends on the contract you agreed to when you took out the loan or signed up for the given credit card. Generally, debt collectors can charge interest on accounts in collection.
- You ricochet from one agency to another – Debt collectors can reach out to other agencies in attempt to find you. Should they still not be able to locate you, they can even reach out to third-parties such as friends and relatives (though, they cannot discuss your finances with them).This process can repeat itself perpetually until they reach you. All the while, your debt may be increasing due to interest and collection costs.
- You get sued – Sometimes, a collector’s best option is to sue you. When you repeatedly fail to communicate with them, this can be the case. Defending against a debt collection lawsuit is However, it’s not only a difficult process, but is likely to end with the collector garnishing your wages directly from your paycheck.
Speaking with debt collectors can be a stressful experience. Failing to pay your debts will undoubtedly result in even more stress. It can quickly lead to your credit and debt spiraling out of control. The best way to put debt behind you is to pay it off or have it discharged, not ignoring it. Contact a bankruptcy lawyer to discover which approach is best suited to help you pay off or discharge your debt.
Kevin D. Judd is a DC bankruptcy lawyer with the mission of providing his clients with a path to financial freedom.