While dealing with substantial amounts of debt can be a taxing experience, for some individuals in Ohio, it may also be a part of everyday life. However, as financial troubles continue to be a concern, some may wonder about the consequences they might face should they fall further behind on payments. Since dealing with debt collection agencies may only add to a person's stress load, seeking guidance on what to expect and how to pursue relief could be advisable.
When it comes to most financial obligations, a past-due payment may result in extensive late fees and a possible increase in interest rates. However, should one fall 60 or more days behind on payments, his or her accounts could be sent to a collection agency. While this may inherently lead to increased attempts of contact, after a certain period, creditors could decide to pursue legal action.
The emotional toll debts can take on a person may be challenging enough as is, and the threat of legal action may only add to the difficulty of the situation. In addition, accounts that fall behind significantly could be reported to credit bureaus, and the impact this can have on one's credit score can be substantial. Even though a person may receive offers to settle a debt, if he or she cannot afford to do so, additional late fees and interest rates may cause the balances on accounts to continue to rise.
Individuals who are constantly dealing with debt collection attempts may wish to protect their financial futures from harm, but they might be uncertain how to achieve this goal. When facing a similar circumstance, a person could consider speaking with a bankruptcy attorney in Ohio for some much-needed guidance. An attorney can help a client become better informed on the available options and assist him or her in forming a strategy with which to pursue relief from debts.
Source: usnews.com, "What Happens if You Don't Pay a Debt?", Geoff Williams, April 23, 2018