During these difficult economic times, falling behind on credit card debt is not uncommon.
More and more Americans are unable to pay their bills and many times stop paying loans and credit cards in order to make their home payment.
However, this can get you into a world of trouble.
Although there is no debtors prison any longer and most debt that many people have is unsecured, you can be sued by credit card companies for what you owe.
They can place a lien on your home, if you have not homesteaded or your home or there is enough equity.
They can also ask that your wages be garnished and even your tax return.
Falling behind can become very serious very quickly and it is better to get a jump on the situation before you are receiving court summons in the mail.
Once you realize you can longer keep up with payments, the first thing to do is contact a debt management company who will work with you to negotiate with the credit card companies and banks towards a settlement and repayment plan.
Unfortunately, ignoring the phone calls and letters will not make them go away.
Each state has a statute of limitations in regards to debt, however you do not want to be called and harassed for two, three, of four years or more.
Contacting a debt settlement company immediately will save you time and aggravation.
Remember, once any company you owe money decides to take you to court, you have to show up so that a decision is not made that could adversely affect you.
Also, they can ask for a freeze on your bank account until a decision is made, which could cause you further serious financial hardship.
Taking action as soon as you realize that you are falling behind, will ensure that your case is handled and you can free yourself from the debt that is weighing you down.