The average American is currently carrying more than $16,000 in credit card debt.
Most of us have one in our wallets. And at some point or another, many of us will probably rack up a considerable amount of credit card debt that we can't pay off. Credit card companies are often too eager to issue new cards without knowing their customers' financial situation and whether or not they can afford the payments. This means they're putting themselves at risk for bankruptcy so they won't be able to make any other major purchases like a car or house down payment with cash savings alone later down the road either.
An estimated 2 million Americans are sued each year for unpaid debts such as credit cards, medical bills and auto loans among others.
The most common debt people get sued for is credit card debt. The second most common debt people get sued for is medical bills and the third most common debt people get sued for is auto loans.
Now you may be wondering: how do I know if I’m at risk of getting sued? Well, there are a few indicators that signal whether or not your creditors might take legal action against you. For example, if you receive repeated calls from collection agencies demanding payment and have fallen behind on payments several times without paying off the entire balance every month, chances are good that your creditors will sue you in court. Also, a good way to know if you will be sued is if it has been assigned to a collection law firm in your state.
There has been a nearly 400% increase in credit card and other consumer debt lawsuits from 2000 through 2016, according to the latest data from an analysis of court records.
The average debt lawsuit is for about $11,000. However, the most common form of debt sued for is credit card debt, representing more than half of all cases.
However, according to a recent analysis of court records by CreditCards.com and LexisNexis (a powerful search engine for legal documents) the range is much broader than that: there has been a nearly 400% increase in credit card and other consumer debt lawsuits from 2000 through 2016--from 2,045 in 2000 to 10,945 last year.
If you've received a summons on an old debt, don't ignore it because after 30 days your creditor will win a default judgment against you by default.
If you've received a summons on an old debt, don't ignore it because your creditor will win a default judgment against you by default. If this happens and your bank account is frozen or garnished, then it's best for you to respond to the summons before that happens so that the court can decide whether or not to grant relief from judgment (which would prevent them from garnishing your wages).
You should be aware that it is not always easy to deal with creditors but it is better to face them before they take drastic measures that could hurt you financially beyond repair. You can face them by not ignoring the summons and responding in time.
If you are facing a debt lawsuit, contact us today and let us help. Our attorneys have the expertise to represent you in court if necessary. We have helped many people just like you get out of debt without filing for bankruptcy or paying more than they should have. Don't wait until it's too late!
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