When you are faced with seemingly insurmountable debt levels, you may be tempted to give up and stop making payments. It is one of the worst financial decisions you can make. If you are feeling overwhelmed by your debts, you should contact the debt resolution team at Resolvly.
Our professionals can help you find the light at the end of the tunnel and regain your financial freedom. Without help, you can face serious consequences that will negatively affect your finances for years to come.
Unpaid debt continues to grow
When you stop paying a creditor, your debt is not frozen. It will continue to grow because of compound 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, stopping all payments can cost you thousands of dollars in fees.
Debt collectors will come knocking
When you stop paying your debts, your creditors will try to contact you for several months. If you don’t pay a secured debt, you risk repossessing the asset. 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 collection agency. These agencies are usually much more adamant about collecting your debt. This results in frequent phone calls, letters and emails. Having an overdue account will also hurt your credit rating, which may affect your ability to obtain favorable financing in the future.
Debt collectors make their profits by obtaining payment from defaulting consumers. While they will start by contacting you directly, they will eventually move on to more severe actions, such as filing a civil lawsuit. If you lose a lawsuit against a debt collector, you risk having your wages garnished.
If you have a large debt, the courts can even force you to sell or liquidate your assets. This means selling a property or having to give up any funds you have in your savings. When facing a civil lawsuit, you need the services of a consumer law firm, such as those who partner with Resolutely.
A plummeting credit rating
As mentioned above, ignoring your debt will eventually get reported to the credit bureaus. This will hurt your credit score, making it much harder to get a loan or finance a home later. Once your score is damaged, it may take years for it to recover.
Debt will hurt your long-term success
Ignoring your debt can put undue strain on your personal and professional life. Many potential employers perform credit checks, especially if you work in the financial industry.
In addition, bad credit caused by not going into debt can make it impossible to rent a nice apartment or take out a personal loan. The consequences of ignoring your debt will hamper your financial opportunities for years to come.
How can Resolvly help you?
At Resolvly, we can put you in touch with an experienced consumer lawyer. All the companies with which we are partners are specialized in the rejection of debts, that is to say the act of eliminating debts to creditors. They will negotiate on your behalf with creditors and achieve favorable results.
Don’t ignore your debt and suffer financial ruin. Contact Resolvly and let us help you achieve financial freedom!
About Resolvly, LLC
Resolvly is an attorney referral service approved by the Florida Bar who helps clients nationwide connect with consumer protection lawyers specializing in debt resolution. Founded in 2015, the Boca Raton-based company has become an industry leader in helping thousands of Americans find the right legal solution to reducing or eliminating their unsecured debt. Resolvly helps with credit card debt, private student loans, business debt, medical bills, and vehicle repossessions.