When you’re facing seemingly insurmountable levels of debt, you may be tempted to just give up and stop making payments. This is one of the worst financial decisions that you can ever make. If you are feeling overwhelmed by your debt, then you need to reach out to the debt resolution team at Resolvly.
Our professionals can help you to find the light at the end of the tunnel and retake your financial freedom. Without help, you can face some serious consequences that will negatively affect your finances for years to come.
Unpaid Debt Keeps Growing
When you stop paying a creditor, your debt does not get frozen. It will continue to grow due to compounding interest and late fees. In fact, the total amount you owe will continually increase until you resume payments or resolve the debt. If you owe multiple creditors, ceasing all payments can cost you thousands of dollars in fees.
Debt Collectors Will Come Knocking
When you stop making payments on your debt, your creditors will attempt to contact you for several months. If you default on secured debt, then you are in danger of the property being repossessed. When it comes to unsecured debt, like medical bills or personal loans, a creditor does not have this option.
Instead, they will sell your debt to a collections agency. These agencies are usually much more adamant about collecting your debt. This results in frequent phone calls, letters, and emails. Having a delinquent account will hurt your credit score, too, which can impact your ability to get favorable financing in the future.
Wage Garnishment
Debt collectors make their profits by obtaining payment from consumers that are in default. While they will start by contacting you directly, they will eventually escalate to more severe actions, such as filing a civil suit. If you lose a lawsuit to a debt collector, you will be in danger of having your wages garnished.
If you owe a substantial amount of debt, the courts can even force you to surrender or liquidate your assets. This means selling off property or having to give up any funds in your savings. When you’re facing a civil suit, you need the services of a skilled consumer law firm, like the ones that partner with Resolvly.
A Plummeting Credit Score
As mentioned above, ignoring your debt will ultimately result in being reported to the credit bureaus. This will hurt your credit score, which will make it much more difficult to obtain a loan or finance a home later down the line. Once your score is damaged, it can take years for it to recover.
Debt Will Hurt Your Long-Term Success
Ignoring your debt can place undue stress on your personal and work life. Many potential employers run credit checks, especially if you work in the financial space.
In addition, poor credit caused by ignoring debt can make it impossible to rent a nice apartment or take out a personal loan. The consequences of ignoring your debt will hinder your financial opportunities for years to come.
How Can Resolvly Help?
At Resolvly, we can connect you with an attorney that is experienced in consumer law. All of the firms that we partner with specialize in debt dismissal, which is the act of eliminating debt owed to creditors. They will negotiate with creditors on your behalf and obtain favorable outcomes.
Do not ignore your debt and suffer financial ruin. Contact Resolvly and let us help you to achieve financial freedom!
About Resolvly, LLC
Resolvly is Florida Bar-approved lawyer referral service that helps clients nationwide to connect with consumer protection attorneys that specialize in debt resolution. Founded in 2015, the Boca Raton-based company has become an industry leader by helping thousands of Americans to find the right, legal solution to reduce or eliminate their unsecured debt. Resolvly helps with credit card debt, private student loans, business debt, medical bills, and vehicle repossessions.