Many people don’t like to keep up with paying off their debts. Perhaps they think that it is useless because they are not getting immediate benefits from it or maybe because they don’t like to spend all of their hard-earned money every month on debts. If you have defaulted on your credit card or other loans, you will have to face some severe consequences. Try looking for help by searching for a local debt relief office using terms like Las Vegas debt consolidation service. Ensure that you’re aware of the outcomes of ditching your debts before you decide not to pay them.
1. It will impact your credit
If you have defaulted, no matter if you answer the call of collection agencies, your collection account will be listed on your credit report, which will make an impact on your credit score. When the collection appears on your credit card or loan, your credit score will naturally fall. All the subsequent charges and late payments that you should have paid on time will harm your credit score before a collection.
2. Debt will continue to grow
You might have ceased to pay the debt, but that doesn’t put an end to the monthly increase due to your interest. Your debt will double over time while you will act ignorant. Always remember that paying debts in the minimum amount is better than not paying them at all. For getting rid of debt, you might have decided to stop paying it, but it will always come back to you. You have to pay your debt in any way, so it is better to pay it now and prevent it from growing further than to pay twice the amount after some time.
3. Different agencies will try to reach out to you
If one collection agency becomes unsuccessful in collecting the outstanding amount from you, your account will be handed over to another agency. This process will continue until the balance remains outstanding. If you stay stubborn and don’t pay the unpaid amount, you will become a familiar person to most collection agencies, which will affect your credit score badly.
4. Collection agencies will not rest
Until they get the amount from you, they will not rest. You might try to hide somewhere because you are tired of facing bill collectors every now and then, but they will find you no matter what. They will reach out to your relatives, neighbors, and even employers to get information about you. Think how horrible and embarrassing it will be when the people you know will meet or be called by them, who will inquire about you. When you meet your family, they will also ask you questions about your debts.
5. You will get sued
After all these scenarios, you don’t leave collection agencies with any other option. If you constantly run away from bill collectors, they will end up suing you. If they win the case, a judgment will be passed against you which will permit collection agencies to get the money out of you in whichever way the judge declares.