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The Consequences of Debt

Most Americans are terrified by the possibility of being swallowed by debt. Debt is a difficult burden to bear and affects every other aspect of a sufferer's life. In addition, not being able to pay back creditors can lead to many consequences. A few of those consequences are listed here: Debt collection agencies. When lenders

Most Americans are terrified by the possibility of being swallowed by debt. Debt is a difficult burden to bear and affects every other aspect of a sufferer's life. In addition, not being able to pay back creditors can lead to many consequences. A few of those consequences are listed here:

  • Debt collection agencies. When lenders and creditors don't receive the money that is due to them, they often turn to debt collection agencies. In addition to being very persistent and more than a little intrusive, debt collection agencies and creditors have several legal recourses at their disposal to retrieve their money.
  • Wage garnishment. One of the ways that creditors retrieve their money is by garnishing a debtor's wages. If a court recognizes that an individual has defaulted on his or her debts, then a portion of that individual's paycheck will be given to the creditor every pay period.
  • Lawsuit. A creditor can take debtors to court if they do not receive the money, which will only compound the amount of money that the debtor has to pay.
  • Ruined credit report. Debtors' credit scores will drop significantly when they default on loans or accrue debt. This will affect all future attempts to establish credit or apply for loans. A bad credit score can also affect an individual's ability to purchase housing or a car.

For persons interested in learning more about the consequences of debt or trying to get out of debt, one available option is to talk with an Indiana bankruptcy attorney about the possibility of filing bankruptcy.

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