Credit card debts continue to be a growing concern for many families in Cincinnati and Dayton and elsewhere. Even accounts that fall one or two months behind could be sent to debt collection agencies, and the impact this could have on a person’s finances can be substantial. However, many individuals may still be unaware of exactly what takes place when a credit card account falls past due.
There are a variety of situations in which a person’s credit card account may become past due. While in some cases, the strain of other debts may leave a person incapable of meeting the minimum amount due each month, studies indicate the most common reason for past due accounts lies in simply forgetting to make the payment. Regardless of how it happens, just one past-due payment on a credit card can bring about dire consequences.
Once an account becomes delinquent, a late fee may be added to the account balance. After 60 days, the interest rates on the account may skyrocket to just under 30 percent, which can be devastating. In addition to late fees and an increase in interest rates, past due accounts could be reported to the various credit bureaus, and the impact this can have on a person’s credit score can be substantial.
For individuals who are struggling under the weight of high amounts of credit card debt, dealing with frequent debt collection attempts can be a daunting process. Those who wish to pursue relief from debts and protect their financial futures could consider retaining the services of an attorney for guidance in choosing a path. An attorney in Ohio can provide a client with guidance on the best course of action to take to pursue debt relief and subsequently assist him or her in navigating the process.