Dont Be Terrified Of A Credit Card Lawsuit

How many people are so frightened of being sued because of a credit account? This is just pure ridiculousness once you comprehend a few concepts. First, your credit card company for instance is charging extremely more than the state's permissible limit on your interest rate. You can be grateful to a district court appellate judge for his opinion in 1978 that opened the door to this condition we face today. Do you apprehend that if your 29% interest rate credit card sues you and wins, it would take them about eight months to full fill the course of action to sue you and by the time they obtained a judgment lien, if they did, the interest rate would be reduced to the state's legal limit, usually about 9%.

What's more, the judgment lien creditor can only garnish a small portion of your paycheck, no more than 25% of your take home pay and even less if your state has a law saying so. But what is even more incredible is that if you compare the amount of money side by side with what you were voluntarily paying each month on this inhospitable, unfair 29% interest rate account, it would be about three times what you would pay from a wage garnishment two years later.

And the biggest punch line is that wage garnishment would legally block every creditor you have from taking your paycheck through a wage garnishment as well. And while they can levy on your bank account and encumber the equity in your home (if you still have any), it only takes a couple of hours to prevent this from ever happening, so it's not even worth talking about.

So why shop for another voluntary intentional payment plan such as bankruptcy or debt settlement when you can just let them try and take your wages? However, not every creditor/collector will even try to sue you. The state already has a payment plan and by defaulting to that plan, you risk far less money than trying to voluntarily work with your creditors and you are then protected from all creditors except one at a time.

This is exciting enough but when we explain this to clients, some of them ask, "So if I do not need any payment plan and you gave me this free information, why would I pay to have you help me?"?The answer is you really don't, but the service we provide is walking you through the exact steps to protect your property, banking, small business, cash flow and wages so that you don't have to reinvent the wheel and risk doing something or not doing something that would allow a creditor to take money or property.

It's a bit like I tell my wife when she says I should fix something in the house or paint it for myself. I show clearly that while I probably could do that, it is better to have a professional who does it all the time. You would not begin to think how much of my "honey to-do-list" I have escaped out of.