When a person falls behind on their credit card bills, concerning things start happening, and they happen fast. Interest rates increase, minimum payments grow, and it’s not uncommon for a person to find themselves quickly overwhelmed.
A person in this situation should consider working with professional credit repair companies in Philadelphia, because if these problems go on long enough, they may have to worry about wage garnishment.
What Is Wage Garnishment?
For most people, getting to the point where their wages are garnished is a painful journey. First, they must be more than thirty or sixty days behind on their credit card payments.
If the person is unwilling or unable to make a payment of any kind towards their unsecured credit card, the credit card company (or whichever entity the money is owed to) may feel they have no choice but to file a lawsuit. Many people try to ignore their debt, but this is the worst possible decision in these circumstances. If a person is served legal papers and declines to show up in court, the credit card company wins automatically.
If you decide to show up to court, you can plead your case and perhaps cut some kind of deal. This is often preferable to a complete win for the credit card company. Barring extreme circumstances, most people will be ordered by the court to pay the credit card company, and if the person cannot or does not meet their payment obligations, the court can order a person’s wages to be garnished.
This means money will automatically be deducted from your paycheck by the state and deposited into the accounts of the credit card company. Depending on how bad the situation is, filing for bankruptcy may be the person’s only option.
How Can Credit Repair Help?
To be truly effective, a credit repair company needs to be consulted before things have gone to court. That being said, credit repair services can also help to rebuild credit once it has been destroyed, so it’s often worth it to speak with such a company to see if they can help.
First, the credit repair company will examine a person’s credit report. Line by line, they will discuss the report with their client, looking for any inaccuracies. Millions of Americans have inaccuracies on their credit reports dragging down their credit rating, and sometimes, these inaccuracies even go to court without the person knowing. The next thing you know, your wages are being garnished in a case you knew nothing about.
Credit repair companies have legal and financial professionals on staff who will work with banks, creditors, and credit reporting bureaus to get inaccuracies corrected quickly. They know every trick creditors and bill collectors use to get someone to pay both real debts and inaccurate ones.
In certain cases, debts may be beyond the statute of limitations, and the faster these inaccuracies are removed, the more quickly a person’s credit report can recover.
The Phenix Group Can Help
No one should have their wages garnished, and no one should face credit card companies alone. Credit repair companies such as The Phenix Group can advise you on best practices, explain whether you should apply for credit cards, and help get you better interest rates and improved overall credit health. Reach out for your free consultation today!