Page 22 - Book1E

While it’s unlikely that someone would show up on your doorstep to collect a debt, none of us can hide from creditors. Credit card issuers have a variety of options to get their money back and make your life miserable should you decide to stop making payments.
“Interest never sleeps nor sickens nor dies; it never goes
to the hospital; it works on Sundays and holidays; it never takes a vacation; it never visits nor travels; it takes no pleasure; it is never laid off work nor discharged from employment; it never works on reduced hours...Once in debt, interest is your companion every minute of the day and night; you cannot shun it or slip away from it; you can- not dismiss it; it yields neither to entreaties, demands, or orders; and whenever you get in its way or cross its course or fail to meet its demands, it crushes you.”
— J. Reuben Clark, Jr.
14
Secured and Unsecured Debt
Here are some of the things they do:
Boost your interest rates. Many credit card companies have a penalty interest rate starting at 25% and higher. If you don’t make your pay- ments, your rate will skyrocket, making it even more difficult to make payments on time.
Take money out of your paycheck, or garnish your wages. When you sign up for a credit card, you make an agreement with your credi- tor to make payments on your account according to the agreement. If you break the agreement by not paying, the creditor can sue you in civil court to recover the money you owe. This includes garnishing your wages, which means the creditor can demand that up to 25% of your paycheck be deducted automatically towards payment of the debt. Having your wages garnished doesn’t present you in the best light to your employer either.