​

Personal debt is at some of the highest levels ever recorded, and it shows no signs of slowing down. The sluggish economy isn't helping the situation, either.

Much of this debt is beyond the control of consumers. They have lost their jobs, are hit with medical emergencies, or just need to provide the basics for their families.

If this sounds familiar, you may be wondering if a credit card company can sue you for nonpayment. In short, yes they can.

There are a few things you should know about the potential of a credit card company suing you for nonpayment, though. The more information you have during difficult times, the better.

First, they do not like to sue their customers unless it becomes absolutely necessary. After all, it costs them money to go through the process, and there is always a chance they won't win.

That being said, it's not all that common for a credit card company to sue a consumer, but it can happen. What is far more likely is that they will turn over your account to a collection agency.

You have a much better chance of being sued by a collection agency than by a credit card company.

Second, you have to really mess up before they will even think about suing you. You not only have to owe a lot, but you also have to miss several payments.

Actually, missing payments may not even be the tipping point. What really gives you the best chances of a credit card company suing you for nonpayment is not communicating with them about why you're not paying.

Therefore, the best way to prevent getting sued is to call the company as soon as possible, and let them know what's going on. Most card companies offer hardship programs.

You may be able to have your interest rate lowered, have late fees forgiven, or other things that work to your benefit. Most programs are usually good for six months to a year, but you may be able to re-enroll once the initial time has expired.

Remember, it's in their best interest to work with you, but they can't do anything if you don't clue them in.

Third, being sued isn't nearly as bad as a lot of people assume. It's not any fun, to be sure. But it's not the end of the world either.

Being sued simply means you will be taken to court. It doesn't mean you will lose. Plus, if your finances are in really rough shape, the judge may lower how much you owe by a significant amount.

However, if a judgment is entered against you, the card company will have the power of the courts to collect what you owe.

Finally, a credit card company suing you for nonpayment is a real possibility if things get too far out of control. But there are things you can do to minimize the chances of it ever happening to you.

While it is very easy to lower your credit score (a late payment here, a forgotten bill there), it is much harder to raise it back up.

Bad credit often means higher interest rates, being denied for student loans, or even being turned down by a potential landlord.

This article will help you avoid these things with credit repair.

A great place to start when you are trying to repair your credit is to develop a budget. Realistically assess how much money you make each month and how much money you spend.

Next, list all of your necessary expenses such as housing, utilities, and food. Prioritize the rest of your expenses and see which ones you can eliminate.

If you need help developing a budget, your public library has books which will help you with money management techniques.

Don't close all of your credit accounts after you realize your financial problems and start working on repairing your credit.

You must have at least one or two accounts in good standing (no debt owed) to keep your credit scores high, so maintain them as long as you're able to pay any interest they accrue.

Non can promise to clean your credit report.

Anyone who says this is scamming you and should not be trusted. If the items listed on your report are true and valid, then no one can take them off or make them disappear faster. They will be there permanently.

Do not fall prey to the seven or ten year bad credit "monster" so many creditors put forth. You can positively impact your history through diligence and effort.

These time frames are by no means a set standard on how long negative reports affect your standing. Many times these are used as a scare tactic to keep you from being proactive in your efforts.

If you have bad credit and are looking to repair it then check with the companies you are paying on time every time and see if they are reporting it to credit agencies.

Some companies do not report and you can ask them to to help support you and report that you have stable credit.

Repair efforts can go awry if unsolicited creditors are polling your credit. Pre-qualified offers are quite common these days and it is in your best interest to remove your name from any consumer reporting lists that will allow for this activity.

This puts the control of when and how your credit is polled in your hands and avoids surprises.

To ensure that your credit reports are up to date and accurate across all three major bureaus, order reports from Equifax, TransUnion and Experian every year.

You are entitled to a free report from each bureau every year, so checking all of your credit reports will cost you nothing and could help you to uncover a damaging error.

As mentioned earlier, having bad credit can negatively impact your lifestyle. Getting your credit score back up can make you a less risky (and therefore a more attractive) candidate during interviews, applications for housing, and requests for loans.

Using these credit repair tips can be extremely beneficial if you would like to raise your credit score.

​

​

Credit card debt isn't any fun, and the more you have the worse it is.

One method a lot of people turn to is consolidation. This is where you combine all of your debts into a single debt, with a single payment.

This single payment can be significantly lower than the total amount you were previously paying. However, credit card consolidation isn't right for everybody, and there are a few things you should know.

With that in mind here are some tips to help you consolidate more effectively.

Tip #1: Read any terms of service carefully, and be sure that you understand them. This tip applies to those who will consolidate by themselves through moving higher interest balances to a single card or two with lower interest rates.

You need to know if there are any fees for balance transfers, how long the lower rate will last, how much of the transferred balance falls under the low rate, and so on.

All of these things can have a major impact on how much you pay, and the goal is to pay less, not more.

Tip #2: Check into any credit counseling agency or debt consolidation company you are thinking of using.

In a perfect world you would be able to trust all companies that offer such services, but the reality is that some of them are only after your money, and won't do anything but make your credit situation worse.

These types of companies advertise heavily on television, radio and the internet, but that doesn't automatically mean you can trust them.

Look for unbiased reviews and check with the Better Business Bureau to see if there are any consumer complaints.

Tip #3: After you have consolidated all of your credit cards, do not use them. Remember, you will be reducing your overall expense, and this can give you the illusion of having more money to spend.

But that isn't the case. You need to stop adding to your debt, and do whatever you can to pay off your consolidated card.

If you find you are in a true emergency situation after you've started credit card consolidation, then (and only then) charge that emergency expense to the card that is carrying the balance of what you owe.

You should never start charging on the cards that have a new zero balance, as it will only lead to trouble.

Tip #4: No matter what company you go with, and whether you do it yourself or not, you have to read all of the terms of the agreement.

This can't be overstressed. Don't go by what somebody tells you face to face. What counts is what the paper you are signing says.

In legal matters, a written contract holds more weight than a verbal one.

The other reason terms are so important is that they will let you calculate how much you will have to pay. This is the only way you can accurately compare which credit card consolidation offer is the best one for you and your situation.

​

Let's face it, the economy is not as strong as it could be, and while it's struggling along, more and more people are finding themselves getting deeper and deeper into debt.

The sad thing is that, most likely, none of this debt is your fault. After all, you need a place to live and food to eat, but circumstances beyond your control have now left you owing more money than you can pay back.

However, consumer debt reduction may just be the silver lining you've been looking for. Of course, there is more than one way to reduce your debt.

Which one you choose will depend on your personality, as well as your current situation. That being said, here are some things you can do--whichever method you decide to use--to get yourself off to a strong start.

1. Know exactly where you are.

It's time for a gut check. You need to write down all of your debts, interest rates, household expenses, and any other money that is being spent. Be specific, and account for every single cent. Be sure to write down all of your income, and remember to list any liquid assets you may have that you can apply toward lowering your debt.

2. Set your priorities.

You need a roof over your head, water, and food to eat, so those things should be your highest priority. Utilities and medication will also be near the top of the list for a lot of people.

Next is a vehicle, especially if you live in the country, or have no other way of getting to work. Does this mean you should give up all of the little "treats" in your life? Not necessarily, but you need to make sure the necessities are taken care of first. After that, you can start deciding which things are more important.

Since we are talking about consumer debt reduction, it makes sense that the less necessary items should be the first to go. For example, do you really need the full satellite television package, or could you live with basic TV for a few months if it meant you could get out of debt?

3. Reduce the amount you owe.

Yes, you will be chipping away at your debt with each payment you make, but we're talking about reducing it all at once. The way you do that is by talking to each of your creditors.

They may be able to forgive late fees, lower interest rates, or remove other arbitrary penalties. If they won't do any of that, then you can always consider getting a debt consolidation loan which will have the same effect.

4. Increase how much you pay.

The more you can pay toward your debt, the quicker it will be paid off. Now that may sound obvious, but the reason this is so important is that it negates the effect of compound interest. Depending on how much you owe, and the current interest rate, paying double the minimum payment could allow you to pay of your debt eight times faster! How's that for consumer debt reduction in action?