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Can I Go to Jail For Credit Card Debt?
Today's economy has not been kind to people and many people are asking the question, can you go to jail for credit card debt. Debtor's prisons have been gone for a long time. We don't have enough prisons for violent offenders and it would be stupid to put people in jail for making poor decisions or being a victim of circumstances. If this were the case, many of us probably all have been in jail at one time or another.
Not paying debts can become a civil offense, but it will never be a criminal offense unless it involves fraud. The worst thing that can happen is that a judgment would be taken against you and your wages could be garnished. But these consequences can generally be avoided if you are willing to communicate with your lender and not ignore your lenders when they contact you. In fact, you should contact your credit card company at the first sign of trouble and see what programs they have available that could help you through the rough times.
There are things you can do to begin getting out of debt. While not all of these solutions will be particularly attractive, sometimes you just have to cut your losses and start over. The sooner you can clean the slate, the sooner you can begin to rebuild your credit and get on with your living a more stress free life. Credit counseling is one option, but if you are to the point where you cannot make your minimum payment, this option will not work for you.
Debt settlement is another option that is available to individuals with credit card debt. This debt relief alternative works best for old debt or for persons that are not able to make a 2% payment. It will satisfy the debt, but it will not be pretty. A debt settlement service negotiates with your lenders to have your credit card balances reduced, making it easier to pay them off in a short amount of time. Deb negotiation does affect your credit and you will most likely be taxed on any amount over $600 that your lender writes off.
Bankruptcy should be used only as a last resort. However, there is an alternative to bankruptcy that can have you out of debt in 12-36 months. If you are in debt and are looking for a solution that will have you out of debt quickly, you may want to consider getting a free quote from a debt consolidation company that handles both debt settlement and credit counseling cases. These companies have nothing to gain by recommending one option over the other and there is nothing that says you have to take either option. Making no choice at all will not benefit you either.
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